Retail NZ, the Auckland Business Chamber and 35 other business groups have written to the Government urging it to rethink plans to ban surcharges on Visa and Mastercard transactions.

The open letter to Minister of Commerce and Consumer Affairs Scott Simpson argues the ban is a blunt tool that will end up hurting both businesses and shoppers.

Retail NZ chief executive Carolyn Young says surcharges are “a vital tool for cost recovery, especially for small and medium-sized enterprises already facing rising operational expenses.”

She warns that without them, retailers will be forced to absorb steep card processing fees, leading to higher prices for all consumers while banks pocket more.

Auckland Chamber CEO Simon Bridges says this is not a lone voice.

“Twenty-one Chambers of Commerce from across New Zealand have put their name to this letter. Alongside other business associations, we are representing thousands of businesses across the country. From small family-run operations to larger enterprises, they all stand to be affected by this proposal.”

The letter highlights that many businesses already choose not to surcharge, and when they do, it simply reflects the true cost of accepting high-fee cards.

A ban, the groups say, would unfairly shift costs onto all consumers, even those paying with low-cost methods like EFTPOS, and risks accelerating the decline of EFTPOS in favour of expensive card networks.

For Hibiscus Coast retailers, already squeezed by rising rents, wages and supply costs, the concern is clear: fewer options to manage payment fees could mean tighter margins, higher prices, or both.

The groups are calling instead for better transparency so shoppers see the costs of their payment choice, technology that allows precise surcharging, and stronger support for low-cost payment systems.

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