BNZ goes against Kiwibank flow

By KEVIN TAYLOR

While other banks are chopping fees with the advent of Kiwibank, the BNZ is raising charges on the one major product missing from the new bank's armoury.

The BNZ is increasing some Visa and Mastercard credit card fees from March 22.

The bank will also charge for cash advances where the card account is in credit - previously, it charged only if a card had a debit balance.

Government-backed Kiwibank does not offer a credit card, although it plans to introduce one in three to six months.

BNZ is increasing credit card fees for:

* ATM and electronic cash advances in New Zealand, which rise from 90c to $1 each.

* Overseas cash advances, which go from $5 to $7.50.

* Over-the-counter cash advances, which increase from $2 to $5, with some exceptions.

* Currency conversion fees, which rise for Visa cards from 0.75 per cent to 1.25 per cent and for Mastercards from 1 per cent to 1.25 per cent.

The currency conversion fee has not previously been disclosed separately.

BNZ head of corporate affairs David Browne said the new fees reflected the true cost of transactions.