The Restaurant Association has responded to the Paywave surcharge ban for consumers, but warns it will add pressure on hospitality businesses.
The Restaurant Association has recognised that the ban on surcharges for in-store payments, including Paywave, is positive for consumers, but highlights the challenges this presents for hospitality businesses already operating on tight margins.
"We understand and support making payments simpler and more affordable for consumers," said Marisa Bidois, CEO of the Restaurant Association.
"However, these surcharges are genuine costs that businesses must pay. Without surcharges, businesses will need to absorb these fees, further impacting already small margins."
It is important that these announced changes align with recent Commerce Commission announcements regarding the regulation of interchange fees, in order to ease the burden on small businesses.
The recent announcement by the Government to ban surcharges on card and contactless payments has come as a surprise, despite the Restaurant Association’s ongoing discussions with officials about these concerns.
"We’ve actively engaged with the Government to outline the financial pressures faced by hospitality businesses due to bank-imposed fees," Bidois explained.
"While we welcome consumer-focused changes, we are concerned about the lack of consultation on this particular announcement."
The Restaurant Association anticipates hospitality businesses may need to adjust their pricing to manage these additional costs.
"Removing the ability to surcharge could mean businesses factoring these costs into their overall pricing, potentially leading to increased costs for diners," added Bidois.
“There’s still an underlying perception among consumers that surcharges are simply businesses attempting to increase profits. We believe this perception may only worsen unless there is a careful, clear communications effort explaining exactly how interchange and merchant service fees flow through to consumers.”
“Surcharges are a hassle and an unwelcome surprise when shoppers get to the till. That pesky note or sticker on the payment machine will become a thing of the past,” said Minister for Commerce and Consumer Affairs, Scott Simpson.
“We’re banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases.
The Minister said New Zealanders are paying up to NZD 150 million in surcharges every year, including excessive surcharges of up to NZD 65 million. He said that is money that could be saved or spent elsewhere.
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