A proposed Government ban on payment surcharges is under fire from the New Zealand Chambers of Commerce, who say it could hurt small businesses, including some on the Hibiscus Coast.

The new law would stop retailers from passing on card and contactless payment fees to customers.

But Auckland Business Chamber CEO Simon Bridges says that while the goal is fair, the impact could be damaging.

“No one wants consumers hit with unreasonable fees,” says Bridges.

“But banning surcharges outright could do real harm to small businesses, particularly in retail, hospitality, and tourism.”

Leeann Watson from Business Canterbury adds that most small and medium-sized businesses use surcharges just to cover merchant fees.

If that option disappears, they will either need to raise prices for everyone or absorb the cost themselves.

For many, especially those tied to recommended retail pricing, neither option works.

The NZCCI says the plan could shift New Zealand from a user-pays model to one where everyone pays, regardless of how they choose to pay.

That’s a real concern for Coastie businesses working on tight margins, particularly in tourism or food service.

Instead, the Chambers want the Government to focus on the root issue: high merchant fees from banks and payment providers.

A formal submission on the bill is expected later this year.

Until then, Bridges says there is still time to find a better way that supports both shoppers and small business owners.

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