A warning for savvy shoppers this holiday season!
Unreasonable surcharges are a real Grinch this Christmas, but we've got your back!
Since December 1st, new rules have been in place to limit those pesky interchange fees, which are like a hidden tax on your purchases. These fees are what a retailer's bank pays to your bank when you use a card, and while it's great news for businesses, we want to make sure you, the consumer, are getting a fair deal too.
Consumer NZ's spokesperson, Jessica Walker, has some important advice. She says that surcharges should not exceed 1.2% to 1.3% now. Anything close to 2%? Well, that's a red flag!
But here's where it gets controversial... Some retailers might not be playing by the rules. Walker highlights cases where surcharges are not properly disclosed. So, what can you do? Ask the retailer about any potential surcharges and their amount. It's your right to know!
Walker also emphasizes that New Zealand's guidelines require retailers to offer surcharge-free payment options, like cash or card insertion/swiping. If you're worried about high surcharges, simply choose a different payment method.
And this is the part most people miss... New Zealand's fees are now among the lowest globally, so it's only fair that these savings are passed on to you, the consumer. Estimates suggest Kiwis are paying anywhere from $45 million to $65 million annually in excessive surcharges.
Meanwhile, retailers are pushing back against the government's plans for a hardline ban on in-store surcharges. Retail NZ's chief executive, Carolyn Young, wants a compromise, suggesting a cap on surcharges instead of a complete ban. Her proposal? A 0.5% cap on debit card surcharges and a 1% cap on credit card surcharges.
So, what do you think? Should retailers be allowed to charge surcharges, or is it time for a complete ban? We'd love to hear your thoughts in the comments below!
