Why do some stores charge a 2, 3 or even 5 per cent surcharge when you tap your card to pay? Some even slap you with a flat fee of 50c or up to $5. That’s despite new rules introduced in 2022. Here’s what could be done to tighten things up.
Despite recent reforms, Consumer NZ says contactless payment fees are still a “surcharging swindle”. “The charges in some places are overwhelmingly high,” Consumer NZ campaigns manager Jessica Walker says. Her organisation has fielded more than 80 complaints about payment fees since the Retail Payment System Act, designed to lower fees, was passed in November 2022.
The Commerce Commission told the Herald it had fielded 96 complaints over the same period. Walker thinks tens of millions of dollars in promised savings have yet to be passed on to shoppers. Commerce and Consumer Affairs Minister Andrew Bayly told the Herald : “I am aware of the issue with overcharging contactless payment fees.
It is wrong and it’s something I am encouraging the Commerce Commission to pursue with their full might.” How much is too much? The law says contactless payment fees should reflect reasonable costs to a retailer, with no gravy on top. The Commerce Commission does not give dollar figures for surcharges.
But given caps on the fees providers pay each other higher up the food chain, it has a good idea of what people should pay when they tap their card or pay for something online using a credit or debit card. Its rules for appropriate fees ar.