RegulationNew Zealand
Visa and Mastercard Interchange Cuts Target $250m Fee Reduction
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 is targetting a cut of $250m in fees paid by merchants which is more aggressive than the regulator's last cuts in 2021 which targetted a $70m reduction. 2021's cuts saw all credit card loyalty programs (including all Air New Zealand Airpoints credit cards) severely cut the value earned by customers. Submissions on the Commission's consultation paper are due by 20th August.
