Photo / SuppliedThe Government is to clamp down on the fees banks charge businesses when people pay by credit or debit cards. The major banks temporarily cut contactless debit card fees to small business customers in late March amid pressure from technology entrepreneurs worried the high cost was putting merchants off using it. A major component of the merchant fee is the interchange fee - the fee paid between banks for the acceptance of the card transaction. Contactless debit card interchange fees will stay at 0.2 per cent or less and swiped and inserted debit card fees would stay at zero. The Government aims to make final policy decisions on reducing merchant fees mid-year with the aim of the full regulatory regime coming into force next year.

Source: New Zealand Herald May 11, 2021 22:15 UTC