The Restaurant Association is celebrating the Commerce Commission’s final decision to regulate interchange fees on Visa and Mastercard transactions, marking a significant victory for hospitality businesses across New Zealand.
This regulatory change addresses a long-standing concern for our industry, which has endured some of the highest payment processing fees among OECD countries.
Delivering Much-Needed Cost Relief
This decision will reduce payment processing costs by an estimated $90 million annually, providing substantial relief to restaurants, cafes, and other hospitality businesses that operate on traditionally tight margins. For the average small business in our sector, this translates to savings of approximately $500 per year, though actual benefits will vary depending on each business’s transaction mix.
The regulation specifically targets credit card and foreign-issued card payments, which have been the most expensive transactions for our members to process. This is particularly important for hospitality businesses that regularly handle tourist payments and premium card transactions, where these fees have created an unfair burden.
Our Advocacy and Support Throughout the Process
The Restaurant Association actively championed these regulatory changes throughout the consultation process, recognising the urgent need for reform in New Zealand’s payment processing landscape. Our CEO, Marisa Bidois, has consistently highlighted how hospitality businesses have been disproportionately affected by fees that are among the highest in the OECD.
Throughout our advocacy, we recommended a measured implementation approach, allowing time for businesses to adjust to the new regime before any further regulatory measures are considered. We’re pleased that the Commerce Commission has acknowledged this balanced approach.
“We know there are concerns around excessive surcharging, and we agree this should be kept under review. But our recommendation was to allow the new fee structure to bed in before taking further steps.”
Marisa Bidois, RA CEO
Our Continued Monitoring and Advocacy
While we celebrate this victory, the Restaurant Association remains vigilant about ensuring payment providers act responsibly under the new regulations. We are calling for complete transparency from payment companies regarding their fee structures and will be closely monitoring any attempts to shift costs to other areas.
The Restaurant Association will be watching closely to ensure payment providers don’t undermine this win for businesses by increasing fees in other areas. This ongoing oversight reflects our commitment to protecting our members’ interests beyond this initial regulatory success.
What This Means for Our Members
The timing of these cost reductions couldn’t be better for hospitality operators who continue to face challenging economic conditions. For our members working within tight margins, every dollar saved can be reinvested into improving customer experiences, supporting staff, or maintaining competitive pricing.
This Commerce Commission decision validates our long-standing advocacy efforts and demonstrates the power of collective industry action in addressing systemic market imbalances. The Restaurant Association will continue to champion policies that support the growth and sustainability of New Zealand’s vibrant hospitality sector.