Merchant services in NZ are the payment processing services that allow businesses to accept card and digital payments from customers. This includes EFTPOS machines, online payment gateways, contactless payments, and merchant accounts that securely process transactions.
A merchant is any business that sells goods or services to customers. For example, a retail store, café, trades business, or online shop in New Zealand that accepts card payments is considered a merchant.
A merchant fee is the fee a business pays to process card payments. It’s usually charged as a percentage of each transaction, sometimes with an additional fixed fee per payment.
In New Zealand, typical merchant fees range from around 0.7% to 2.5% per transaction, depending on the card type, industry risk, and your provider agreement.
Merchant fees in NZ are generally GST-free, but the exact treatment depends on how the fee is structured and invoiced. Businesses should confirm with their accountant for their specific situation.
Merchant fees are paid by the business accepting the payment. Some businesses choose to absorb the cost, while others may pass it on through surcharges where permitted.
A merchant payment is any payment made by a customer to a business using a debit card, credit card, contactless tap, mobile wallet, or online checkout system.
Businesses can reduce merchant fees by negotiating rates, choosing the right payment provider, optimising their card mix, and reviewing their merchant agreement regularly.
