Andrew Bayly: Commerce and Consumer Affairs Minister on New Zealand potentially scrapping bank card surcharges

Australia's Government is set to ban debit card surcharges as part of an economic crackdown designed to bring financial relief amid an ongoing cost-of-living crisis.

Over on this side of the Tasman, the coalition Government has hinted New Zealand may follow suit and cap surcharge fees for debit and credit cards. 

Commerce and Consumer Affairs Minister Andrew Bayly says he's committed to making sure Kiwis don't have to pay more than expected when they use their cards. 

"If there's clarity around it, then the retailer or Air New Zealand. whatever, can look at their situation and adjust accordingly."

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Episode Transcript

Speaker 1 (00:00):
Now, the Aussies, as I was telling you yesterday, are
about to get rid of some of those annoying fees
that you get hit with when you pay by card,
and it looks like we might follow suit. The Ossie
government is planning to ban the sur charges for purchases
made by debit card. Commerce and Consumer Affairs Minister Andrew
Bailey is with me right now.

Speaker 2 (00:16):
Hey Andrew, how are you going?

Speaker 1 (00:18):
I'm very well, thank you. So are you planning to
ban debit card surcharges?

Speaker 2 (00:23):
Yes, we were working on I've been working with the
Commerce Commission for several months. In fact, we're a biggerhead
of Australians. We've just finished the comments Commissions just finished
consultation process and it's had a lot of submissions and
we expect to now make an announcement the next few weeks.

Speaker 1 (00:41):
How what about the credit card surve charges?

Speaker 2 (00:45):
Well, there's two things that the Commerce Commission went in
consult on. There's two parts that one is the end
bank fee charges and then the overall surve charge aspects
that when you go in and pay for your coffee,
you're incurring that total cost. So the focus has been
on both interbank charges and a surcharge the total fee,

(01:09):
because we want to make sure that you're not the
worst thing at the moment when you're go into a
shop to buy coffee, you don't know what is the surcharge.
So we want to deal with both debit cards and
credit cards.

Speaker 1 (01:21):
Okay, so would you ban the seurcharge with credit cards
as well?

Speaker 2 (01:24):
No, it's not a question of banning the total surcharge.
There isn't a legitimate fee to some extent, it's just
a question what is an appropriate feed at the moment? No? Yeah, yeah,
at the moment, you know, you can be paying up
to two and a half percent and it's difficult for
the retailer as well. In many cases, the retailer doesn't
know what is an appropriate fee because it's made up

(01:46):
of a whole lot of components. But what we want
to make sure is that we have visibility around the
inter bank charge, which is the key of a counter
about sixty percent of the total costs that people pay,
and also making sure we've got to cap around the
total surcharge that people Where do.

Speaker 1 (02:03):
You reckon that captured sit.

Speaker 2 (02:06):
Well, we'll wait and see what the Commics Commission went
out with. They talked about an interact charge of one
point two percent and zero point seven percent for a
total shock. But that look, let's wait until the Commis
Commission finish its report. It's gonna it's going through that
process at the moment. But we are very committed to

(02:26):
make sure KIV is not paid more at the till
when they go to buy something and.

Speaker 1 (02:29):
They brought to So if we if we are talking
about everything here right, we're talking about going down and
get your sushi, paying for your flights or your yeah
I don't know, yeah, yeah, travel agency fees. But also
if you go onto the New Zealand websites, what you're
paying there that little search charge on the credit card,
that would be capped as well.

Speaker 2 (02:48):
Yeah, because what happened. If there's clarity around it, then
then the retailer or inners in and whatever can knock
at what their situation is and adjusted accordingly. So it's
it's we will keep like the end of bank charge,
that'll be something that Comms commissill be quite clear about.

(03:09):
But the total sur charge, there will be a clarity
around that and then the retail or whoever will be
in a position to be clear about what they should.

Speaker 1 (03:16):
Be what's your time? From Andrew? When are you going
to do this?

Speaker 2 (03:19):
Oh? Matter of next few weeks. Actually we were hoping
about to make an announcement before then, but the number
of submissions that the Comments Commissioner received they want to
take a bit more time to process.

Speaker 1 (03:30):
I'm looking forward to it very very much, Andrew, thank
you very much, really appreciate is Andrew Bailey Commerce and
Consumer Affairs Minister. Oh those surcharges, they don't they grind gears.
I'll tell you two of my favorite ones. The New
Zealand surcharge. Oh angry every time, briefly angry. I've got
used to it. I just it's like a tiny little
flare up. I'm angry, and then you know what booking
you do? You resigned to it. The other one, the

(03:53):
old parking one. You know when they're like it's going
to cost you fifty cents to park your and fifty
cents to use your credit card or and then I'm
over it again. But anyway, he's going to fix it
for us. So that's that's fantastic. For more from Heather
Duplessy Allen Drive. Listen live to News Talks a B
from four pm weekdays or follow the podcast on iHeartRadio