The Reserve Bank of Australia’s rethink on its retail payment surcharge ban last week has led a coalition of national industry associations in New Zealand to link arms and reject the NZ Government’s plan to introduce a similar ban.
Auckland Business Chamber, Retail NZ, the New Zealand Chambers of Commerce Network, and several other associations say new developments in Australia and on-the-ground stories from New Zealand small businesses are further proof that the Government must rethink its blanket ban on surcharges.
The coalition also includes Auckland Business Chamber, Retail NZ, New Zealand Chambers of Commerce Network, Bed & Breakfast Association New Zealand, Booksellers Aotearoa New Zealand, Hospice New Zealand, Hospitality New Zealand, the Restaurant Association of New Zealand and Retail Meat New Zealand.
Last week the Reserve Bank of Australia signalled it may back away from a full ban, following strong backlash from small businesses, banks and industry experts. The RBA is now considering a more nuanced approach, potentially allowing surcharging on higher-cost credit and corporate cards, and reassessing proposed cuts to interchange fees.
RBA’s Payment System Board expects to publish its conclusions and an implementation timeline for any regulatory action by March 2026.
Auckland Business Chamber CEO Simon Bridges said Australia’s shift should ring alarm bells in Wellington.
“Across the Tasman, regulators have realised that a one-size-fits-all ban creates more problems than it solves,” Bridges said. “New Zealand risks charging ahead with a policy that even Australia now recognises is too blunt, too disruptive, and unfair on small businesses.”
A joint press release shared by the coalition of national industry associations also highlighted a NZ Herald op-ed shared this week, covering concerns shared by Whananaki General Store.
According to the story, the store is a small, family-run business that has come out of an “extremely tough winter” and is now facing the prospect of higher costs from proposed Government changes to payroll and KiwiSaver, along with a planned surcharge ban that would shift even more cost onto the shop counter.
“Taking away the ability to recover genuine payment costs just moves the burden from the big end of town to the small,” Bridges said.
The coalition of associations continue to support a practical alternative: capping debit surcharges at 0.5 per cent and credit surcharges at 1 per cent on personal domestic cards in the Visa and Mastercard schemes.
“It’s the sensible middle ground,” Retail NZ CEO Carolyn Young said.
“Before charging ahead, the Government should look at what’s happening in Australia and listen to Kiwi small businesses who simply can’t absorb another hit.
“Surcharges are a transparent way to recover the high costs of accepting certain payment methods. If the surcharge ban goes ahead, those costs won’t disappear – they’ll just be hidden in higher prices for everyone.”