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The Restaurant Association is welcoming the Commerce Commission’s final decision to regulate interchange fees, delivering much-needed cost relief for hospitality businesses.
The decision will reduce the cost of accepting Visa and Mastercard payments by an estimated $90 million a year — a significant win for small businesses, many of whom operate on tight margins.
“This is a very welcome move for our industry,” says Restaurant Association CEO Marisa Bidois.
“Hospitality businesses have long been burdened by some of the highest card payment fees in the OECD. This decision puts money back into the hands of operators at a time when every dollar counts.”
The regulation applies to credit card and foreign-issued card payments — often the most expensive for businesses to process. ComCom estimates the average small business will save around $500 annually, though actual savings will vary depending on the mix of transactions.
The Restaurant Association supported the Commission’s move throughout consultation, while also recommending that businesses be given time to adjust to the new regime before further regulation is considered.
“We know there are concerns around excessive surcharging, and we agree this should be kept under review,” says Marisa. “But our recommendation was to allow the new fee structure to bed in before taking further steps. We’re pleased to see ComCom acknowledge this.”
The Association is also urging payment providers to be transparent about their fees and not shift the cost burden elsewhere. “We’ll be watching closely to ensure payment providers don’t undermine this win for businesses by increasing fees in other areas,” Marisa says.
