A new amendment bill that plans to ban card surcharging in New Zealand is raising concern among NZ retailers, with some declaring they will pass these costs onto consumers through price rises.
Retail NZ CEO Carolyn Young said the peak body’s members have been really clear in their opposition to the Government’s proposed card surcharge ban and the negative impacts it will have on their businesses.
“The proposed ban is poorly targeted, has been rushed through and risks significant unintended consequences for retailers and consumers alike,” Young said.
“Many retailers cannot afford to absorb the Merchant Service Fee and we are hearing that many of our members will have to pass on those costs. That will leave both businesses and consumers worse off at a time when the cost-of-living continues to bite.”
Hubert Kuzel of the Capital Office Supplies store in Wellington told Retail NZ that he currently passes on the contactless and credit card fees on to consumers via a surcharge, as he can’t afford to absorb them.
“The trend is going more and more into contactless payments, and this is where the charges are happening,” Kuzel said. “It really takes up to almost 20 per cent of our profit, and I’m not making a mistake, it is 20 per cent of what we’re losing on margins.”
If a ban is imposed, Kuzel said he will have to increase prices.
Young added that many retailers have found themselves in the same position.
Currently, the amendment bill is stalled in NZ Parliament. The bill passed its first reading in September last year.