Promises to ban paywave surcharges to help consumers save money appear to have stalled.
By Anneke Smith of RNZ
The Government said it would axe surcharges by May to "put money back into Kiwi's pockets".
The move followed growing public frustration at the cost and transparency of the charges; the Commerce Commission estimating New Zealanders were paying up to $150 million in surcharges each year – including $45 to $65 million in what it considered excessive charges.
Businesses pushed back, Retail New Zealand arguing every one or two and a half percent made a different in a tough economy.
The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill is now languishing on the order paper, ready for be read a second time.
"It's going nowhere," New Zealand First leader Winston Peters told reporters on Thursday afternoon.
Prime Minister Christopher Luxon said the Government was taking "a breather" on the policy.
"[It's] still under consideration. We just want to make sure we understand all of the implications before we push the final button on it."
Asked if there was any disagreement between the coalition parties, Luxon said no.
"We want to take a breather and have a think and make sure that we fully understand the implications of that on all businesses."
ACT leader David Seymour said businesses couldn't afford it.
"The Government said it would do it. We've listened to the very strong feedback. I've listened to small business people saying we get a million bucks through our card system, a 2% fee we have to eat would be $20,000, our small business can't afford that, and that's why the conversations carry on."
"We are listening as a Government to small business and we'll get to a better place."
Seymour said the surcharge ban bill had been through Select Committee, where his colleague Parmjeet Parmar suggested businesses should be able to keep surcharges if they offered a free alternative, like EFTPOS.
"Maybe that's where we end up, who knows."
Asked whether the ban would be in place by May as promised, Commerce and Consumer Affairs Minister Scott Simpson said he was "hopeful".
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