Labour suggests way forward for card surcharge ban if retailers don’t bear the costs
Thursday, 26 March 2026
Labour may offer the National Party a lifeline to keep its proposed ban on credit card surcharges in shops in play, with talks now taking place between the parties.
The surcharge ban, which Commerce Minister Scott Simpson had originally hoped would be in place by May, would prevent retailers imposing surcharges on contactless payments made in person at the till.
ACT Party leader David Seymour said the Retail Payment System Amendment Bill, which would enact the ban, was “dead” after the party joined NZ First in signalling its opposition.
But Labour commerce spokesperson Arena Williams did not rule out supporting the legislation if some changes were made, and said she was talking to Simpson.
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“I’ve got amendment papers that I’m in discussion with the minister about,” she told The Post.
Simpson subsequently confirmed the talks. “I have discussions with Arena Williams about a range of topics across the portfolio and this is one of them. We’ll have more to say in due course,” he said.
Williams made clear she was keen on the surcharge issue being debated further in Parliament.
Her comments appear to explain why Simpson has not given up hope on the surcharge ban despite opposition from National’s two coalition partners and the Green Party.
National and Labour would have enough votes to approve a ban, if they were able to reach an agreement on how it would work.
Seymour said he could “protect small business from many things, but not that kind of unholy alliance”.
Earlier today, Retail NZ chief executive Carolyn Young said retailers were “breathing a sigh of relief” over ACT’s opposition to the surcharge ban, which she assumed meant it would not be proceeding any further in the current parliamentary term.
“Retailers have been clear that the proposed card surcharge ban would have been yet another blow to the struggling sector after a tough trading environment that has lasted several years,” she said.
But Williams said “just the fact that the ACT Party says they’re not going to support it doesn't mean it won’t pass”.
Labour’s differences with the Government centred on who would bear the cost of the surcharge ban, she said.
“National has chosen the interests of consumers and the interchange providers such as Visa and MasterCard.
“We prefer the interest of consumers and small business owners, not the interests of Visa and MasterCard, so we are having a disagreement about who should shoulder the costs.”
Williams said she would not go as far as committing the party to support the ban.
Senior Labour MP Megan Woods also stressed Labour had not finalised its position.
“Labour will take it to caucus and we’ll make decisions on it,” she said.