Kiwis are still paying too much for credit and debit card transactions compared with Australia and the UK, says Retail NZ.
Research from the retail organisation's 2018 Payments Survey showed on average, merchant service fees in New Zealand were significantly higher than other jurisdictions.
Retail NZ general manager for public affairs Greg Harford said the difference was increasing as other countries looked to address what he said was inherent unfairness in fee levels being charged by banks and credit card schemes.
In New Zealand, on a weighted average basis, merchants paid 1.6 per cent for accepting credit cards and 1.2 per cent for accepting contactless debit cards, compared with 0.5 per cent and 0.2 per cent in the UK and 0.8 per cent and 0.6 per cent in Australia.
"A key concern is that the ongoing lack of regulation in New Zealand is driving expensive rewards programmes for premium cards," Harford said.
"Because retailers tend to incorporate bank charges in overall pricing, there is effectively an inequitable wealth transfer from less-well-off Kiwis to better-off New Zealanders. High fee levels are costing the whole economy."
Merchant service fees include interchange rates paid by one bank to another, as well as a range of others fees, charges and profit.
