Commerce Commission mulls limiting amount credit card companies can charge banks

29 minutes ago

Commerce Commissioner Bryan Chapple.

The Commerce Commission proposes to limit how much credit card companies can charge banks for the use of commercial credit cards, saving New Zealand businesses about $40 million a year in merchant fees.

The interchange fees charged by Mastercard and Visa on commercial credit cards are not currently subject to regulation, but that would change if the draft changes were implemented.

Commerce Commissioner Bryan Chapple said this was a first step to regulate interchange fees on commercial credit cards, which made up a small share of transactions but generated a disproportionately larger share of interchange fees, which were paid by businesses through their merchant service fees.