Commerce Commission caps interchange fees on commercial credit cards
New Zealand's Commerce Commission will cap interchange fees on commercial credit cards starting next April to reduce business costs. The move is expected to save businesses $40 million annually and encourage payment innovation.
Why it matters
Regulatory intervention in payment fees aims to lower operational costs for businesses and promote a more competitive and efficient financial ecosystem.
The fees businesses pay to accept some credit cards will be capped, saving them $40 million a year, the Commerce Commission says.
The charges, known as interchange fees, will be capped on Mastercard and Visa commercial credit cards from April 22 next year, commissioner Bryan Chapple said this morning.
A commercial credit card is a one issued to a business, often so employees could make work-related purchases.
“This action, combined with earlier cuts to interchange fees on personal cards, should reduce businesses’ costs by around $290m each year.”
Reducing the fees would also ensure costs businesses pay to accept Mastercard and Visa cards were reasonable and improve the incentives for payment issuers, such as banks , to consider supporting alternative payment methods, Chapple said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in