Restaurant Association responds to Paywave surcharge ban for consumers but warns it will add pressure on hospitality businesses

The Restaurant Association recognises that the ban on surcharges for in-store payments, including Paywave, is positive for consumers, but highlights the challenges this presents for hospitality businesses already operating on tight margins.

“We understand and support making payments simpler and more affordable for consumers,” says Restaurant Association CEO Marisa Bidois.

“However, these surcharges are genuine costs that businesses must pay. Without surcharges, businesses will need to absorb these fees, further impacting already small margins.”

It is important that these announced changes align with recent Commerce Commission announcements regarding the regulation of interchange fees, in order to ease the burden on small businesses.

The recent announcement by the Government to ban surcharges on card and contactless payments has come as a surprise, despite the Restaurant Association’s ongoing discussions with officials about these concerns.

“We’ve actively engaged with the Government to outline the financial pressures faced by hospitality businesses due to bank-imposed fees,” Marisa says. “While we welcome consumer-focused changes, we are concerned about the lack of consultation on this particular announcement.”

The Restaurant Association anticipates hospitality businesses may need to adjust their pricing to manage these additional costs. “Removing the ability to surcharge could mean businesses factoring these costs into their overall pricing, potentially leading to increased costs for diners,” she says.

“There’s still an underlying perception among consumers that surcharges are simply businesses attempting to increase profits. We believe this perception may only worsen unless there is a careful, clear communications effort explaining exactly how interchange and merchant service fees flow through to consumers.”