As contactless payment technology becomes more widespread, so do
payment surcharges. In 2022, the Retail Payment System Act passed
with the goal of reducing costs for businesses that accept card
payments so that there would be a decrease in surcharges for
customers. However, there are growing concerns that certain
retailers are now profiting from surcharges at the expense of
consumers.
The Act allows the Commerce Commission to establish merchant
surcharging standards to ensure that retail payment service
surcharges align with the actual cost to merchants for accepting
payments. These standards may include requirements for disclosing
surcharge information, representing surcharges as specified,
limiting surcharges according to the standards, and maintaining
records of surcharge calculations.
