Credit card charge not fair - Visa

Retailers charging a credit card surcharge are discriminating against customers, Visa NZ says.

Some retailers have been criticised after introducing a surcharge for customers who buy items using a credit card.

The surcharge follows a Commerce Commission decision in August allowing retailers to pass on to customers charges made by credit card companies.

But Visa New Zealand spokesman Sean Preston said the charge was being unfairly shifted to customers who chose to use a credit card.

Many people used cards to keep track of their spending. By adding a surcharge, retailers were discriminating against those customers.

"It restricts. It can limit consumers' choice of payment," Mr Preston said. "There will definitely be customers who will shop elsewhere."

Retailers who have introduced a surcharge must tell customers before they buy an item and the surcharge must reflect the cost of that item.

Independently owned BP stations are charging 60c extra for every credit card payment of less than $30, and 90c for payments of more than $30.

Some retailers say the surcharge will put pressure on credit card companies to lower merchant service charges.

Commerce Commission general counsel Peter Taylor this week said that the commission would watch developments.

"This should over time result in decreased costs to credit card users, while benefiting retailers and their customers through reduced costs."

- ADDITIONAL REPORTING: NZPA