Financial regulators in New Zealand are keeping a close watch on surcharges that some retailers have started to impose for credit card transactions.
In a statement, the Commerce Commission of New Zealand said some merchants have begun surcharging since last year, when the commission and MasterCard Worldwide and Visa Inc. struck a deal that generally placed restrictions on interchange rates and enabled merchants to assess surcharges for card transactions.
“The commission will be watching developments to ensure that the long-term interests of consumers are being served,” the statement said without providing details of any action the commission might take should it deem surcharges to be too high. Commission officials could not be reached for immediate comment.
According to New Zealand press reports, surcharges have varied widely, with some merchants charging a flat fee, while others are basing them on a percentage of the transaction amount. According to the New Zealand Herald Tuesday, police are charging 3% of the transaction amount for consumers paying fines with credit cards.
