New Plan to Cut Card Fees by $250M
Explore new Commerce Commission proposals to further cut interchange fees, potentially impacting credit card loyalty programs. Submissions due by August 20.
July 30, 2024
Interchange, paid by retailers and merchants on Visa and Mastercard transactions, is the funding source for credit card loyalty programs. The Commerce Commission has outlined new options for further reducing interchange, including an extreme option of cutting it to zero.
This new regulation targets a cut of $250 million in fees paid by merchants, which is more aggressive than the regulator's last cuts in 2021, which targeted a $70 million reduction.
The 2021 cuts significantly impacted credit card loyalty programs, including all Air New Zealand Airpoints credit cards, severely reducing the value earned by customers.
Submissions on the Commission's consultation paper are due by 20th August.
Loyalty Central | New Zealand is a unit of Ellipsis & Company; the loyalty experts.
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