The New Zealand Government has announced that in-person surcharges on Visa and Mastercard will be banned by May 2026. While the move aims to simplify payments and protect consumers, many in the industry are asking the same question: what does this mean in practice for Kiwi merchants, resellers, and customers?
At Skyzer, we’ve been supporting over 20,000 payment terminals nationwide since 2007. Our team has seen firsthand how surcharging is applied in businesses of all sizes. Below, our experts share their views on the change, its implications, and what merchants should be thinking about now.
Why the ban?
The Commerce Commission believes reducing interchange fees and banning in-person surcharges will save New Zealand merchants over $260 million. The aim is to simplify pricing, eliminate “double dipping,” and improve customer trust.
In principle, it’s a positive step. In practice, the way surcharging has been applied in New Zealand has often been messy. Many merchants have seen it less as a way to offset legitimate costs and more as a tool to generate extra revenue. Rates have varied widely, sometimes as high as 5%, leaving customers confused and frustrated.
For merchants who want guidance on implementing surcharges correctly before the ban, Skyzer provides a helpful How to Set Up Surcharging guide. This resource explains the technical setup and regulatory considerations for EFTPOS terminals.
But as with any regulation, the details matter – and right now, many are still unclear.
The merchant reality
Payment acceptance is, ultimately, a cost of doing business, just like electricity, wages, or rent. Businesses don’t add a separate “fridge fee” for keeping drinks cold or a “coat hanger charge” in clothing stores. Treating payments differently has created unnecessary complexity and, in some cases, a poor customer experience.
Examples of this have included:
- Inconsistent surcharging rates that confuse customers.
- Fees displayed only on small EFTPOS screens, difficult to read for many.
- Tourists encountering unexpected charges that leave a negative impression of New Zealand.
- The risk of “double dipping,” where some merchants recover payment costs twice – once through pricing, and again through surcharging.
By banning surcharges, businesses will be encouraged to build payment costs into their overall pricing strategy, making transactions clearer and more straightforward for everyone.
For deeper industry context, merchants can also refer to Skyzer’s Masterclass in Payments with Pat McCammon, which explains fees, surcharges, and best practices in payment management.
The technical uncertainty
While the goal of the ban is clear, the details remain uncertain. As it stands, the government’s announcement only specifies Visa and Mastercard domestic transactions. That leaves open questions about how Amex will be treated, and what will happen with international Visa and Mastercard cards.
Currently, there has been little guidance from Payments NZ, Worldline, or the banks on how these technical gaps will be addressed. Until there’s more clarity, merchants are right to feel unsure about what the practical rollout will look like.
Skyzer also offers insights in Surcharges on Contactless Payments Explained, which explores how different payment types impact costs and customer experience. These resources help merchants make informed decisions before the 2026 changes.
What should merchants do now?
Although May 2026 may feel distant, Kiwi merchants can begin preparing now:
🤝 Lean on your reseller. Our reseller partners are equipped to support businesses through the transition.
📊 Review your pricing model. Plan how you’ll absorb payment costs once surcharging is no longer an option.
🗣️ Communicate openly. Position your business as transparent and fair in the eyes of customers.
🔍 Stay informed. Guidance will evolve, so check back on Skyzer’s news and insights as updates are released, or sign up to our newsletter to have updates delivered directly to your inbox.
⚙️ Future-proof your EFTPOS. Make sure your EFTPOS terminals are up to date and flexible enough to handle new compliance requirements.
FAQ
1. Why is surcharging being regulated in New Zealand?
The Commerce Commission’s decision aims to protect consumers and simplify pricing, preventing excessive or confusing fees.
2. Will surcharging still be allowed after the new regulations?
Surcharging on domestic Visa and Mastercard will be prohibited by May 2026. Other schemes, like AMEX, may have different rules depending on final regulations.
3. How can Skyzer help merchants prepare?
Skyzer provides resources, technical guidance, and reseller support to ensure merchants are ready for the changes, including surcharging setup guides and industry insights.
4. How can I stay updated on surcharging regulations?
Subscribe to the Skyzer newsletter and check Skyzer news and insights for updates on regulatory changes, products, and EFTPOS best practices.
The surcharge ban promises a simpler, fairer payment experience for customers and a clearer operating model for businesses. By preparing now and leveraging Skyzer’s guides and support, merchants can stay ahead of the 2026 changes and ensure smooth, compliant payment operations.
Need guidance on preparing for the surcharge ban? Get in touch with Skyzer to see how we can help.
