Encouraging new technologies and entrants in the market would be good for businesses and consumers, as it would encourage more innovation, value and choice in how payments were made and accepted, he said.
“Over time, this would support a fairer and more efficient payments system for New Zealand.”
The changes relate to commercial credit cards. Photo / Deposit Photos
Commercial credit cards made up a small share of transactions but generated a disproportionately larger share of interchange fees, which are paid for by businesses through their merchant service fees.
Commercial credit cards typically offered cardholders benefits such as loyalty programmes, expense reporting, and interest-free credit, which were partially paid for by businesses through the fees, Chapple said.
“These fees ultimately flow through to retail prices, where everyone pays for benefits only some people receive, which creates an inefficient system.”
Businesses should review their merchant service fee arrangements and contact their payment service providers to understand how the changes may affect their costs, he said.
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