Payment surcharges have been a familiar part of everyday transactions in New Zealand for years. Whether it’s an extra percentage added for payWave, credit cards, or digital wallets, many businesses have chosen to add surcharges to help offset the cost of accepting card payments.
But that’s about to change.
The New Zealand Government is planning to ban payment surcharges for most in-person card payments. The ban will be in effect by May 2026 at the latest, with a one-month implementation window in place as soon as the law is passed.
To make sure you’re fully informed, prepared, and supported well before the changes take effect, EFTPOS Now has put together this guide, alongside the guidance from the Commerce Commission, that will explain what’s changing, why it’s happening, and what you need to do now to stay compliant and avoid last-minute stress.
Under the proposed surcharge ban, businesses will no longer be allowed to apply a surcharge to in-person payments made using:
This applies only to in-person transactions.
Importantly:
You can read the full guidance directly from the Commerce Commission here.
The surcharge ban is part of broader changes aimed at making the payments system fairer, more transparent, and more cost-effective for both businesses and consumers.
For many customers, surcharges feel confusing or inconsistent, especially when they vary between businesses or aren’t clearly explained. From a regulatory perspective, the goal is to ensure customers can pay without unexpected add-ons at the counter.
At the same time, the Commerce Commission has recognised that businesses need relief from rising payment costs, which is why the NZ surcharge ban is being introduced alongside reduced Merchant Service Fees (MSFs).
To support businesses through the removal of surcharges, the Commerce Commission has already taken steps to reduce the cost of accepting card payments.
These reductions are designed to help offset the removal of surcharges and make card acceptance more sustainable long term.
Another key development highlighted by the Commerce Commission is the rise of open banking-powered payment methods.
From 1 December 2025, open banking payment options (such as QR code “scan to pay” solutions) have started being regulated and are expected to become more widely available.
These payment methods can offer:
While card payments aren’t going anywhere, open banking presents an opportunity for businesses to diversify how they get paid and reduce reliance on higher-cost payment types.
If your business currently applies a surcharge to any in-person card payments, you’ll need to take action before the ban comes into effect.
The most important thing to understand is that surcharges won’t automatically disappear on all terminals.
Some EFTPOS machines allow surcharging to be removed remotely, and others require changes to be made manually. In some cases, you’ll need to contact our team at EFTPOS Now to complete the process. Note that we will be getting in touch with those clients who need to call us to make the required changes.
The Commerce Commission strongly encourages businesses to act early, and we agree.
At EFTPOS Now, we’re already preparing for this transition.
Our goal is to make this as smooth and straightforward as possible. Here’s what we recommend:
If you’re unsure, review a recent receipt or test a transaction.
Our team can:
As the ban approaches, phone lines across the industry are expected to become very busy. Getting ahead of the change will help you avoid delays, stress, and potential non-compliance.
Once the ban is in effect, continuing to apply surcharges to in-person card payments could put your business at risk of non-compliance.
That’s why early action is so important, not just to avoid penalties, but to ensure your customers have a smooth, compliant payment experience from day one.
Changes to the payments system can feel overwhelming, especially when they affect day-to-day operations. At EFTPOS Now, our role is to cut through the confusion and provide clear, practical guidance you can rely on.
We’re actively:
If you have questions about the surcharge ban in New Zealand, Merchant Service Fees, or your EFTPOS setup, we’re here to help. Contact us today.
