New Zealand caps fees on Mastercard and Visa commercial cards to cut business costs

The Commerce Commission has set new limits on interchange fees for Mastercard and Visa commercial credit cards, projecting a reduction of about $40 million in annual business expenses. This follows earlier restrictions on personal cards that were expected to save $290 million per year. Commissioner Bryan Chapple explained that commercial cards, though a minor part of transaction volume, generate a disproportionate share of fees, which are ultimately reflected in retail prices.

By capping these fees, the commission hopes to make costs reasonable for merchants and spur the adoption of alternative payment technologies. The caps will take effect in April of the following year, while Consumer NZ spokesperson Jessica Walker warned that there is little evidence the savings will benefit consumers directly.