Check on savings impact from 2009 credit card fee settlements

Commerce Commission chairman Mark Berry

BUSINESSDESK: The Commerce Commission has embarked on a survey of retailers to find out what impact its 2009 settlement agreements with credit card issuers MasterCard International and Visa and other financial institutions over the fees charged to cover banks' costs of credit card transactions.

The anti-trust regulator will survey more than 3000 retailers nationwide to see what impact the new rules have had at the till, it says.

In 2009, the commission cut deals over fees that were smeared across a range of transactions, including cash and eftpos, to cover the surcharge on credit cards. Vendors spread the cost because they were not allowed to recover the fee directly from cardholders.

At the time of the settlements, the regulator said it expected to see savings to retailers of between $70 million and $80 million. Since the October 2009 settlement, annual total credit card billings in New Zealand have grown every month except in July of this year when it was flat, according to Reserve Bank data.

"We want to know what their experience has been since the credit card scheme rules have been changed," commission chairman Mark Berry says.

The settlements meant credit card issuers could individually set intercharge rates that applied to credit card transactions, merchants could apply surcharges to payments made by credit card and non-bank institutions could join the Visa and MasterCard credit card schemes as acquirers if they met certain criteria.

The regulator recovered $3 million from the MasterCard settlement, $2.6 million from Visa, and an aggregate $1 million from ANZ National, ASB, Westpac New Zealand, Bank of New Zealand, Kiwibank, TSB Bank and Warehouse Financial Services.

This article is tagged with the following keywords. Find out more about My Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7321 -0.0009 -0.12%
AUD 0.9304 0.0023 0.25%
EUR 0.6497 0.0003 0.05%
GBP 0.4835 -0.0005 -0.10%
HKD 5.6750 -0.0072 -0.13%
JPY 86.1730 0.0850 0.10%

Commods

Commodity Price Change Time
Gold Index 1285.9 -6.240 2015-01-28T00:
Oil Brent 49.6 -1.150 2015-01-28T00:
Oil Nymex 44.5 -1.700 2015-01-28T00:
Silver Index 18.1 0.000 2015-01-28T00:

Indices

Symbol Open High Last %
NZX 50 5794.8 5820.0 5794.8 -0.60%
NASDAQ 4740.7 4742.1 4681.5 -0.93%
DAX 10719.4 10728.8 10628.6 0.78%
DJI 17402.9 17484.4 17387.2 -1.13%
FTSE 6811.6 6863.0 6811.6 0.21%
HKSE 24645.2 24739.2 24861.8 -1.03%
NI225 17666.9 17778.8 17795.7 -1.13%