WELLINGTON, July 28 (Xinhua) -- New Zealand will ban retail payment surcharges by May 2026, aiming to save consumers millions, officials announced on Monday.
Prime Minister Christopher Luxon described the surcharge ban as part of a broader effort to relieve cost-of-living pressures.
Retail till surcharges currently costing New Zealanders up to 150 million NZ dollars annually, including 65 million NZ dollars in excessive fees, will be eliminated to increase checkout transparency, said Commerce and Consumer Affairs Minister Scott Simpson.
The decision follows recent action by the Commerce Commission to lower interchange fees on Visa and Mastercard transactions, a reform expected to save businesses around 90 million NZ dollars per year.
Simpson said surcharges are an unwelcome surprise and unjustified, adding the ban will stop people feeling "charged to use their own hard-earned money."
Legislation is expected by year-end, with the ban effective by May 2026.
However, restaurants and cafes warn prices may rise due to the planned ban on credit card surcharges for in-person payments, Radio New Zealand reported.
At the post-Cabinet press conference, Luxon cited expanded tax relief, higher childcare subsidies, and the removal of Auckland's regional fuel tax as government measures to boost incomes and curb inflation.
With inflation down to 2.7 percent from 7.3 percent and fiscal support in place, Finance Minister Nicola Willis said New Zealand families will see real relief through lower mortgage payments and more stable rents. (1 NZ dollar equals 0.6 U.S. dollar) ■
