Credit Card Surchage - Are you changing your method of payment?

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Credit Card Surchage - Are you changing your method of payment?

1 | ... | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18

18694 posts

Uber Geek
+1 received by user: 7830

Lifetime subscriber

#3463355 20-Feb-2026 15:35

Handsomedan. Surcharging has to go - you choose what to accept as payment as a part of your business model - if that includes a method that costs you, you need to work out how to roll that into the overall price of everything you sell.

I'd prefer to legislate the other way to always require credit card users to pay for the cost of that service. There is no reason EFTPOS customers should be forced to pay extra on goods for a service they are not getting. Why should EFTPOS customers continue to subsidise all the reward points and incentives that credit card customers get from their credit card companies?

rugrat

3142 posts

Uber Geek
+1 received by user: 945

Lifetime subscriber

#3463365 20-Feb-2026 16:17

I don’t carry credit card on me as always worried about losing it. Have lost it once fallen out of pocket.

Always have watch, phone on me so can pay that way.

A lot of places I pay cash as well, no charge added to that but they have to have change, take it to bank.

I could lose $5 to $10 if falls out of pocket, but not as inconvenient as losing physical card.

Disappointed that surcharge ban might not go ahead.

edit: And there is risk of someone seeing PIN with EFT-POS

Tinkerisk

4800 posts

Uber Geek
+1 received by user: 3660

#3463371 20-Feb-2026 16:35

In Europe, work is currently underway at full speed on the PayPal replacement "Wero". De-coupling.

Qui nihil scit, omnia credere debet.
Firewalls do NOT stop dragons.
In effect we have everything to hide from someone, and no idea who someone is.

mudguard

2328 posts

Uber Geek
+1 received by user: 1250

#3463374 20-Feb-2026 17:00

Handsomedan:

Surcharging has to go - you choose what to accept as payment as a part of your business model - if that includes a method that costs you, you need to work out how to roll that into the overall price of everything you sell.

Yeah I agree. In fact I suspect I've probably made the same comment already in the thread. I don't care what a surcharge is. Just add 5% to all your prices so when I tap my credit card the number on the screen is the number that will come out of my account.

Another anecdote I'm sure I've mentioned before but a friend has online sales for products and it's not until the very end that you'd find out you had to make a bank payment. The number of transactions that would fall over because people would go, oh I can't be bothered logging into my banking, setting up a new payee, maybe I shouldn't be splurging on thing. I'll cancel it.

I suspect we'll see cash handling fees in the future.

richms

29107 posts

Uber Geek
+1 received by user: 10222

Trusted

Lifetime subscriber

#3463375 20-Feb-2026 17:07

mudguard:

I suspect we'll see cash handling fees in the future.

So which is it? You want the fees bundled for all to pay, or them to be split out so that people using that method are those that pay it?

Richard rich.ms

mudguard

2328 posts

Uber Geek
+1 received by user: 1250

#3463397 20-Feb-2026 20:43

richms:

mudguard:

I suspect we'll see cash handling fees in the future.

So which is it? You want the fees bundled for all to pay, or them to be split out so that people using that method are those that pay it?

Oh definitely all included. Cash can't die soon enough

Dell

Shop now for Dell laptops and other devices (affiliate link).

mattwnz

20520 posts

Uber Geek
+1 received by user: 4798

#3463416 20-Feb-2026 23:00

gzt:
Handsomedan. Surcharging has to go - you choose what to accept as payment as a part of your business model - if that includes a method that costs you, you need to work out how to roll that into the overall price of everything you sell.

I'd prefer to legislate the other way to always require credit card users to pay for the cost of that service. There is no reason EFTPOS customers should be forced to pay extra on goods for a service they are not getting. Why should EFTPOS customers continue to subsidise all the reward points and incentives that credit card customers get from their credit card companies?

I am guessing that banks want to get rid of eftpos eventually because they don’t make a % on the transaction. Whereas they do with debit or credit cards. I can see them saying that eftpos is very old technology and not as secure.

openmedia

3451 posts

Uber Geek
+1 received by user: 879

Trusted

#3463442 21-Feb-2026 10:35

Anyone else seeing an increasing number of terminals where you don't see the surcharge until you pay, and if you use paywave you don't see it unless you check your account?

I've had several instances recently where the retailer has no sign-age on their eftpos machine or at their tills. In one case there was small print at the bottom of a menu in a cafe, for a couple of others their excuse was the sticker had fallen off the eftpos machine. One of these had a 3% surcharge and no information was provided. Other than Consumer NZ is there a way to report this?

Generally known online as OpenMedia, now working for Red Hat APAC as a Technology Evangelist and Portfolio Architect. Still playing with MythTV and digital media on the side.

CokemonZ

1106 posts

Uber Geek
+1 received by user: 313

#3463444 21-Feb-2026 10:52

Handsomedan:

CokemonZ:

2.5% is fair

Is it, though?

If you didn't accept card payments, would you get anywhere near the amount of business that you do?

What about advertising and marketing? Do you surcharge for that?

Or if you didn't utilise power - i.e. the retail outlet is perpetually dark and uninviting, there's no electronic, as there's no power, so it's cash only in a lockbox, drawer or safe.

Do you surcharge for those costs? Rates? Rent?

Surcharging has to go - you choose what to accept as payment as a part of your business model - if that includes a method that costs you, you need to work out how to roll that into the overall price of everything you sell.

So this is where I think the conversation gets interesting.

As a retailer, credit cards bring me no benefit - as a matter of fact they are a risky option, fraud, chargebacks etc.

As a consumer, they are great, 50+ days to pay, reward points, extended warranties.

So who should pay for those benefits? The retailer? The consumer? Everyone amortised?

For the retailer cash is king, eftpos/debit is great, bank transfer is good (dinged for the delay), Credit cards are a necessary evil.

For the consumer, well the order is a little different.

SirHumphreyAppleby

2942 posts

Uber Geek
+1 received by user: 1863

#3463446 21-Feb-2026 10:55

openmedia:

Other than Consumer NZ is there a way to report this?

Commerce Commission. It's illegal.

Handsomedan

7772 posts

Uber Geek
+1 received by user: 7412

ID Verified

Trusted

Subscriber

#3463451 21-Feb-2026 11:37

CokemonZ:

Handsomedan:

CokemonZ:

2.5% is fair

Is it, though?

If you didn't accept card payments, would you get anywhere near the amount of business that you do?

What about advertising and marketing? Do you surcharge for that?

Or if you didn't utilise power - i.e. the retail outlet is perpetually dark and uninviting, there's no electronic, as there's no power, so it's cash only in a lockbox, drawer or safe.

Do you surcharge for those costs? Rates? Rent?

Surcharging has to go - you choose what to accept as payment as a part of your business model - if that includes a method that costs you, you need to work out how to roll that into the overall price of everything you sell.

So this is where I think the conversation gets interesting.

As a retailer, credit cards bring me no benefit - as a matter of fact they are a risky option, fraud, chargebacks etc.

As a consumer, they are great, 50+ days to pay, reward points, extended warranties.

So who should pay for those benefits? The retailer? The consumer? Everyone amortised?

For the retailer cash is king, eftpos/debit is great, bank transfer is good (dinged for the delay), Credit cards are a necessary evil.

For the consumer, well the order is a little different.

I'm not sure you fully grasp how it works.
FACT: cash costs money to process. Plus there’s the inherent risk.
In the payment world, cards carry far LESS risk. They have fraud prevention, fraud remedies and as you say, chargebacks. All of this does come at a cost and cardholders do pay for that with annual fees etc. But if you’re saying you don’t get any additional business through accepting cards, I don’t think you know how to analyse your business, or you have a unique (note: not normal) business.
if you don’t accept cards, I’m not shopping with you and I can absolutely hand on heart say many others will also not shop with you. You’re a relic of a past age and don’t need or want business.

My kids and their friends are all in their 20’s. They barely even carry wallets, let alone cash.

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

Quic Broadband

Move to New Zealand's best fibre broadband service (affiliate link). Free setup code: R587125ERQ6VE. Note that to use Quic Broadband you must be comfortable with configuring your own router.

ANglEAUT

altered-ego
2436 posts

Uber Geek
+1 received by user: 842

Trusted

Lifetime subscriber

#3463453 21-Feb-2026 11:48

CokemonZ:

gmball: ... What I’ve never understood is the inconsistency. ...

... Depending on how your machines are organised it can be wildly different. ... The actual cost per transaction can be variable based on card type and your scheme. ...

As somebody who has recently looked into this, CokemonZ is correct. Mastercard/Visa take their cut, the bank takes their cut & then the terminal vendor takes their cut. Depending on the retailers volume & the options chosen, that cut can vary wildly. I looked at eftpos.co.nz as one example as I am interested in only using a terminal, no fancy integrations, nothing complicated. They mentioned bank fees because of the requirement to be set up as a merchant with my banking institution & other bank costs.

Please keep this GZ community vibrant by contributing in a constructive & respectful manner.

geek3001

223 posts

Master Geek
+1 received by user: 331

ID Verified

Subscriber

#3463456 21-Feb-2026 12:37

@openmedia:

Anyone else seeing an increasing number of terminals where you don't see the surcharge until you pay, and if you use paywave you don't see it unless you check your account?

I've had several instances recently where the retailer has no sign-age on their eftpos machine or at their tills. In one case there was small print at the bottom of a menu in a cafe, for a couple of others their excuse was the sticker had fallen off the eftpos machine. One of these had a 3% surcharge and no information was provided. Other than Consumer NZ is there a way to report this?

Yes and I have told the shops in question that they need to sort out their signage and/or payment terminal config.

In principal am happy to pay the surcharge.

One way or another we are going to be stung with surcharges, payment processing fees or whatever they want them called.

I expect whatever fee is being charged to be stated clearly before I choose the payment method to complete the transaction.

I also like to see it clearly printed on the receipt.

Some retailers do not include the fee on their own receipt, however I usually find it printed on the payment terminal receipt. Sometimes it is necessary to obtain both the retailer's receipt and the payment terminal receipt if they are not printed together.

I have had one instance (a pharmacy) where it was not printed on either receipt. I only found that I'd been charged a fee when I was reconciling my monthly account and the amount on the receipts did not match that on my account. I discussed that with that retailer who happily recognised the problem and fixed it.

richms

29107 posts

Uber Geek
+1 received by user: 10222

Trusted

Lifetime subscriber

#3463461 21-Feb-2026 13:00

If they are not going to disclose it properly then its overcharging you. Take that complaint and run with it. No different to when a bar staff takes advantage of drunk patrons and puts $55 into the machine instead of $25 assuming they will not notice it.

The other thing is places that will not return the surcharge when you take things back for a refund.

Richard rich.ms

CokemonZ

1106 posts

Uber Geek
+1 received by user: 313

#3463506 21-Feb-2026 18:55

Handsomedan:

CokemonZ:

So this is where I think the conversation gets interesting.

As a retailer, credit cards bring me no benefit - as a matter of fact they are a risky option, fraud, chargebacks etc.

As a consumer, they are great, 50+ days to pay, reward points, extended warranties.

So who should pay for those benefits? The retailer? The consumer? Everyone amortised?

For the retailer cash is king, eftpos/debit is great, bank transfer is good (dinged for the delay), Credit cards are a necessary evil.

For the consumer, well the order is a little different.

I'm not sure you fully grasp how it works.
FACT: cash costs money to process. Plus there’s the inherent risk.
In the payment world, cards carry far LESS risk. They have fraud prevention, fraud remedies and as you say, chargebacks. All of this does come at a cost and cardholders do pay for that with annual fees etc. But if you’re saying you don’t get any additional business through accepting cards, I don’t think you know how to analyse your business, or you have a unique (note: not normal) business.
if you don’t accept cards, I’m not shopping with you and I can absolutely hand on heart say many others will also not shop with you. You’re a relic of a past age and don’t need or want business.

My kids and their friends are all in their 20’s. They barely even carry wallets, let alone cash.

Cash does have cost, and risk - I agree.

Yeah, credit cards have all of that, for the consumer. For me a chargeback is a risk, and fraud protection is limited, in fact if I accept a fraudulent or stolen credit card, then guess where they take the money from? It's me, and guess what, they don't return the product.

There is a convenience to card payments, they are not all equal. Eftpos is just as convenient to me (a retailer) and costs me a flat rate - no %.

Not as nice to the consumer - no 50 days interest free, no extended warranty etc.

I think as long as a retailer says here is how you can pay, and here is how much it will cost you, it's fair enough.

Unless the transaction cost is so low that it's immaterial.

The recent changes have made more transactions less than 1%, but not most (I don't think, but please treat this as anecdotal not gospel).

Not looking to pick a fight, when I have two sales, one costs me no incremental cost, and one costs me 2%, I prefer, and encourage the no incremental cost sale.

Think about credit card surcharges like delivery fees. Show up to the store - no delivery charge. They still had to get it to the store, put it on the shelf and have someone work, but still, no charge. This is cash or eftpos. If you want it delivered then the delivery charge is passed on. It's not a profit centre, it's a cost recovery. This is the credit card.

So retailers are giving you the option of what you want to do, and offering you various price points so you can make the choice.

If someone wants to pay via a method that costs, it's reasonable to take their money for the product, and pass on any associated service fees (pre-warned).

Wish it wasn't the case, but it is. I personally have made a different choice, but still revisit often, as it is a material cost. I respect and understand any retailer making a different one.

1 | ... | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18