Australia's rethink on surcharge bans has prompted industry leaders to reconsider how New Zealand approaches the change.
Auckland Business Chamber, Retail NZ, the New Zealand Chambers of Commerce Network, and a coalition of national industry associations say new developments in Australia and on-the-ground stories from New Zealand small businesses are further proof that the Government must rethink its blanket ban on retail payment surcharges.
The coalition includes Auckland Business Chamber, Retail NZ, New Zealand Chambers of Commerce Network, Bed & Breakfast Association New Zealand, Booksellers Aotearoa New Zealand, Hospice New Zealand, Hospitality New Zealand, the Restaurant Association of New Zealand and Retail Meat New Zealand.
Last week the Reserve Bank of Australia signalled it may back away from a full ban, following strong backlash from small businesses, banks, and industry experts. The RBA is now considering a more nuanced approach, potentially allowing surcharging on higher-cost credit and corporate cards, and reassessing proposed cuts to interchange fees.
Auckland Business Chamber CEO Simon Bridges said Australia’s shift should ring alarm bells in Wellington.
“Across the Tasman, regulators have realised that a one-size-fits-all ban creates more problems than it solves,” Bridges said.
“New Zealand risks charging ahead with a policy that even Australia now recognises is too blunt, too disruptive, and unfair on small businesses. Taking away the ability to recover genuine payment costs just moves the burden from the big end of town to the small.”
The coalition of associations continues to support a practical alternative: capping debit surcharges at 0.5 percent and credit surcharges at one percent on personal domestic cards in the Visa and Mastercard schemes.”
“It’s the sensible middle ground,” Carolyn Young, Chief Executive of Retail NZ, said.
“Before charging ahead, the Government should look at what’s happening in Australia and listen to Kiwi small businesses who simply can’t absorb another hit. Surcharges are a transparent way to recover the high costs of accepting certain payment methods. If the surcharge ban goes ahead, those costs won’t disappear; they’ll just be hidden in higher prices for everyone.”
Subscribe to the Restaurant & Café newsletter for weekly industry updates and event coverage.
