Like most fellow Kiwis, many Coasties want a cap on card surcharges rather than a full ban, business groups say.

Auckland Business Chamber, Retail NZ, the New Zealand Chambers of Commerce Network and other national associations are urging the Government to rethink its plan to outlaw all retail payment surcharges.

They argue fresh moves in Australia and stories from New Zealand small businesses show a blanket ban would hit local shops and customers at the till.

Across the Tasman, the Reserve Bank of Australia has stepped back from a total ban after strong backlash from small businesses, banks and experts.

It is now weighing up a more targeted approach that could still allow surcharges on higher-cost credit and corporate cards and revisiting cuts to interchange fees.

Auckland Business Chamber chief executive Simon Bridges says New Zealand should take note.

“Across the Tasman, regulators have realised that a one-size-fits-all ban creates more problems than it solves,” he says.

“New Zealand risks charging ahead with a policy that even Australia now recognises is too blunt, too disruptive, and unfair on small businesses.”

A NZ Herald op-ed on the Whananaki General Store described a small family-run shop coming out of a tough winter and facing higher costs from payroll and KiwiSaver changes, plus the planned surcharge ban.

The coalition backs a compromise instead, with debit surcharges capped at 0.5% and credit surcharges at 1% on personal domestic Visa and Mastercard cards.

Retail NZ chief executive Carolyn Young calls this “the sensible middle ground,” warning that without surcharges, costs will not disappear, they will simply be buried in higher prices for everyone, including Coasties.

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