Latest news with #CarolynYoung
RNZ News
2 days ago
- Business
- RNZ News
Should Eftpos and cash-users get a discount?
The government plans to ban surcharges on card payments in-store, saving shoppers from being stung with surprise fees when paying with contactless technology. Photo: RNZ / Leonard Powell Don't expect a discount if you're paying with Eftpos or cash when the new contactless surcharge ban takes effect - but businesses are being put on notice that they shouldn't need to raise prices by more than 1 percent. It was announced on Monday that legislation would be introduced to Parliament to ban surcharges for in-store credit card transactions by the end of the year . Café and roastery owner Richard Corney said it would prompt him to put up prices because he could not absorb the cost himself. He said he paid $12,000 in merchant fees in 2023. Retail NZ chief executive Carolyn Young said the cost to businesses could be significant and all customers would end up bearing it, rather than simply those using contactless cards. "If businesses have to increase their prices to take into account those that pay by contactless and you pay by cash or Eftpos, you're still swiped." She said it was unlikely that retail businesses would offer discounts to those using other payment methods. Recommended retail prices were set at a level that took into account all the business's costs, she said. Small businesses had limited power to negotiate on the card fees they were charged, she said, and they had to be able to accept the payment methods to be able to do business. Corney said he would not offer discounts to those using cash or Eftpos. "Given the government is removing a cost recovery mechanism for merchant fees in general, there's still a net cost to businesses like ours, despite the regulated interchange fees." Infometrics chief forecaster Gareth Kiernan said cash transactions were not free for businesses, either. "I imagine in today's world where very few people pay in cash, the implicit cost associated with the hassle of needing to have appropriate change, finding time to taking money to the bank is reasonably high as a proportion of each transaction. For a small business, that cost is probably not properly accounted for, and might even be zero in accounting terms because the owner is effectively doing it in their own time. "The subsidisation by Eftpos transactions is probably more clear-cut, because there is a reasonably obvious gap in the charges for credit/PayWave transactions vs debit/Eftpos, with little or no difference in the associated work for the business receiving payment. I'd expect to see some more retailers reverting to not accepting credit cards, assessing that the possible inconvenience for their customers is outweighed by the cost savings for their business." But how much can prices reasonably rise? Commerce and Consumer Affairs Minister Scott Simpson said the change would take effect after interchange fees were capped, so they should not be as high as they have been. Consumer NZ spokesperson Jessica Walker said the fee reduction that was expected from late November should reduce the cost to business significantly. "Our stance is that those costs are going to be lower so even if businesses decide to increase prices because of the surcharge ban, that increase should be about 1 percent." She said that was preferable to some of the complaints Consumer received, which reported surcharges up to 25 percent. "The current situation is a mess, it's not working." She said a change in 2022 when the Retail Payment Systems Act took effect was meant to save money but those savings had not been experienced by shoppers. "The decision to ban surcharges should mean there is more money in shoppers' back pockets. Without a ban, there's no guarantee the savings will be passed on." But Young said it was likely that the surcharge ban would prompt more people to move to contactless payments, which would increase the costs overall, even if each charge was smaller. "It would have been great for the minister to let the Commerce Commission go through a proper consultation process." She said a range of surcharges were being charged at present but it would have been useful to allow the interchange caps to take effect and see what the effect was. "The Commerce Commission was going to run a consultation around surcharges," he said. Young said she had expected that could lead to new limits. Walker said open banking should also help to reduce the cost of payments.
Scoop
2 days ago
- Business
- Scoop
Surcharge Ban Will Benefit Consumers, Retail NZ Says
Banning surcharges will improve the retail experience for customers but risks prices being increased to cover the costs of accepting credit card payments, Retail NZ says. 'Retail payments are a contentious and complex area for retail businesses. We are pleased the Government has listened to our calls for changes in the system, to enable retailers to provide better customer experiences,' Retail NZ Chief Executive Carolyn Young says. The changes will mean retailers cannot add surcharges to in-person domestic debit and credit cards. However, businesses will still be able to add surcharges to online sales, pre-paid and international credit cards. The changes are expected to come into force by May 2026 at the latest. Removing surcharges from in-store purchases is a positive move for domestic consumers, but the wider issue of pricing will need to be considered, Ms Young says. 'Retailers continue to face costs to accept debit and credit card payments and these costs will likely be added to product prices in future,' she says. The surcharge ban will likely see an accelerated decline in EFTPOS payments by consumers. EFTPOS payments do not incur any fees to retailers. As consumers change from using EFTPOS to contactless debit and credit cards, there will be a corresponding increase in the fees paid by retailers, so the benefits in the reduction of the interchange fee will be short-lived, especially for SMEs. A 2024 survey of Retail NZ members found that only 25.6% of respondents applied surcharges. Almost half of retailers calculated a rate that covered their costs, while 39% took advice from their terminal provider or relied on information from their bank statement. About 5% looked at what other retailers are charging. Members told us that the complexity of the Merchant Payment System prevented them from fully understanding the charges and fees they pay. These fees include interchange fees, scheme fees, switch fees, other external costs, internal costs and an acquirer margin. Considerable work will be needed to ensure that terminals have the ability to distinguish between domestic debit and credit cards, and commercial or international credit cards, and charge differential surcharge rates, Ms Young says. Retail NZ's position is that all cards should be treated equally. Retail NZ also wants certainty around the Commerce Commission's ability to monitor and enforce both the new interchange fees and the ban on surcharging. The Commerce Commission will need to ensure that the fees being charged to merchants reflect the new legislation, that the savings are passed on to retailers and that other fees are not increased. 'We will be seeking more detail on the surcharge changes, particularly around commercial credit cards which are not mentioned in today's announcement, and possible future changes to online transactions. We look forward to continuing to engage with the Government as it progresses these changes,' Ms Young says.
Scoop
22-07-2025
- Business
- Scoop
Retail Confidence Rises Despite Economic Pressures
Retailers across New Zealand are showing renewed confidence in the face of ongoing economic challenges, according to the latest Retail Radar report from Retail NZ. The quarterly survey, covering April-June 2025, reveals that 69% of retailers are confident or very confident their business will survive the next 12 months — a notable increase from 57% in the same quarter last year. This aligns with the findings of the recent NZIER Quarterly Survey of Business Opinion for Q2 2025 that found retailers were more optimistic about the economic outlook than other sectors. Retailers were 13% more likely to expect better general economic conditions over the coming months than the general business population. The optimism recorded in Retail Radar comes despite 62% of retailers failing to meet their sales targets in the past quarter. However, expectations are improving, with 60% anticipating they will meet or exceed targets in the next three months — up from 49% in Q1 2025 (January-March) and 32% in the April-June period last year. 'Retailers are resilient,' says Retail NZ Chief Executive Carolyn Young. 'While the economic environment remains uncertain, the sector is showing signs of cautious optimism, supported by inflation at 2.7%, steady OCR at 3.25%, and a slight uptick in card transaction spend.' Recent StatsNZ data shows retail sales volumes rose 0.8% compared to the last quarter of 2024, though growth remains modest at 0.65% year-on-year, and still below 2023 levels. Retailers continue to grapple with a range of issues, including: cost of living pressures insurance lease and rent increases Freight costs 'In spite of the confidence expressed by Retail Radar respondents, we are continuing to see retailers across the country shutting their doors due to increased pressure on cost of living, lease and rates increases,' Ms Young says. Following a recent trial by Foodstuffs North Island and guidance from the Office of the Privacy Commissioner, Retail NZ also asked members if they were likely to use Facial Recognition Technology (FRT) to combat retail crime. Only a small number of larger retailers are considering adopting FRT. The main barriers raised by respondents about use of FRT include: High implementation and maintenance costs (69%) Potential public backlash (36%) Need for more evidence of effectiveness (32%). 'FRT may be a useful tool for some, but it's not a one-size-fits-all solution,' says Retail NZ Chief Executive Carolyn Young. 'We know that FRT has proven to be effective in identifying recidivous offenders in-store. However, it requires a considerable commitment to implement, train and maintain FRT in-store.'
NZ Herald
18-07-2025
- Business
- NZ Herald
NZ First bill seeks to protect cash payments up to $500
Winston Peters pushes bill to ensure cash acceptance in stores. Photo / Mark Mitchell As a members' bill, lodged July 14 in the name of NZ First MP Jamie Arbuckle, it's still a long while from possibly becoming law, but it does propose sweeping changes in how businesses treat cash and looks at who gets left out in a digital economy. Here's what you need to know. The Cash Transactions Protection Bill would mandate businesses in trade accept cash payment for goods valued up to $500. 'The bill ensures that New Zealanders maintain freedom of choice in how they pay, preserving cash as what it should be: an enduring private and reliable option,' Peters said in introducing it. 'By protecting the sanctity of cash transactions, the bill upholds personal privacy, maintains sovereign control over New Zealand's monetary system, and lessens the risks posed by digital-only payment systems.' The bill aims to protect cash use, citing impacts on rural communities, the elderly, and low-income earners. Photo / Dean Purcell Exceptions given to the bill's requirements include online retailers and land purchases. The bill also would propose that 'payment in cash must be accepted for essential goods or services' – which it defines as food, water, fuel, health care and household utilities. Another part of the bill would require businesses to keep cash on hand for emergencies. 'A vendor must ensure they have sufficient access to cash to allow them to continue to trade in the event of a digital or electrical outage that lasts longer than 24 hours.' In the introduction, the bill says it 'preserves cash as an explicit privacy-preserving payment method, ensuring both freedom of choice and freedom from unwarranted surveillance in financial transactions'. Critics argue the bill doesn't reflect business realities, with a shift towards digital payments. 'It puts New Zealanders' interests above global trends toward digital currencies, maintaining sovereign control over New Zealand's monetary policy and mitigating the risks associated with digital-only financial systems, like restricted access to funds.' The bill also calls for fees or fines from $1000 to a maximum of $5000 for infringements. But as a members' Bill, it's not yet guaranteed it will ever go to the House for a vote. The Bill first will have to be randomly drawn from the ballot to be considered at all in the House, and then undergo the same process of debate and referral to select committees as any other Bill. While it's on the members ballot, MPs are allowed only one Bill in the lottery at any given time. NZ First has swapped out its Bills on several occasions this term, so there's also no guarantees over how long this legislation will remain in the ballot. Speaking to Checkpoint recently, Retail NZ CEO Carolyn Young said she wondered if the Bill was 'kind of a sledgehammer for a small problem'. Carolyn Young, CEO of Retail NZ. Marisa Bidois, chief executive of the Restaurant Association of New Zealand, said the bill ignored realities many businesses deal with. 'We understand the intent behind the proposed bill – no one wants to see people excluded from accessing essential goods and services. However, requiring all businesses to accept cash for transactions under $500 doesn't reflect the operational realities many businesses face. 'We believe businesses should be trusted to make the right decisions for how they operate and serve their customers.' Can businesses refuse cash? Yes, as long as they 'clearly inform customers in advance that they don't accept cash before you start shopping or receive services from them', the Reserve Bank of New Zealand said. They can do that with a sign on the premises or telling customers in person before you pay. 'Most hospitality businesses still accept cash, but a small and growing number are moving away from it, particularly in busy urban areas,' Bidois said. 'Some customers do push back when cash isn't accepted, especially if they haven't been informed ahead of time. That's why we encourage clear communication.' You're also only allowed to pay so much of a bill in coins, by the way, in case you're thinking of clearing out that piggy bank – you're allowed up to $5 of 10 or 20 cent coins, $10 of 50 cent coins or $100 worth of $1 and $2 coins. According to the Reserve Bank's latest data released in June, 45.8% of the population are still using cash sometimes in 'paying for everyday things' – although 79.1% are using debit cards/Eftpos also. Only 3.6% of people say they 'never use cash', while 33.2% said they hadn't used cash in the past seven days. Cash isn't quite the king it once was. 'We know that less than 10 per cent of transactions that happen across New Zealand throughout the year now happen in cash,' Retail NZ's Young said. 'In the cities a lot less cash is used and in rural areas and areas of deprivation there is a higher percentage of cash that is used.' The bill aims to protect cash use, especially for rural and elderly populations. Photo / Chris Tarpey Bidois said in the Restaurant Association's latest survey, 40% of respondents said cash made up just 5 to 10% of their transactions. Still, when it comes to essentials, 'there's no supermarket that doesn't take cash', Young said. On Peters' Facebook page, the post announcing the bill has gathered nearly 3000 comments and 15,000 likes, with many expressing support for the idea. 'Thank you! I use cash as a way to keep within my budget, as my mother did,' one wrote, while another said it was 'an essential bill - especially for many of our elderly population'. On the other hand, Young said that electronic transactions are often easier for businesses to deal with. 'Electronic transactions are much safer for a wide number of reasons,' she said, including less chance of being targeted by thieves or counterfeit money, and less time for staff dealing with transactions. 'For many retailers and for hospitalities - cafes and things - cash is not always their favoured method of payment because of those challenges.' However, frequently complained-about surcharges such as those for PayWave are 'not ideal', she said. Many also have concerns about the privacy and security issues around digital payments and the records they leave behind. Cash also comes back to the table during disasters, such as Cyclone Gabrielle, which knocked out infrastructure. 'We do know that when the cyclones happened in Auckland and Gisborne and Hawke's Bay 18 months ago that the supermarkets were really critical for being able to, especially in those provincial areas, … provide the cash that people needed to be able to pay for goods and services,' Young said. Bidois said that while there was a clear shift towards digital payments, it was all about striking the right balance for businesses. 'Many businesses are finding that tap-and-go is what most customers expect, and it makes day-to-day operations simpler. 'That said, our members care about customer experience, and most continue to accept cash to accommodate older New Zealanders, tourists, or regulars who prefer it.' - RNZ
RNZ News
17-07-2025
- Business
- RNZ News
Concerns about amount spent by retail crime prevention group
The amount spent by a group set up to look at retail crime continues to come under scrutiny. It's been revealed that the Ministerial Advisory Group for Victims of Retail Crime, set up three and a half months ago amid a worrying spike in retail crime, has cost around half a million dollars. That includes nearly $330,000 on personnel costs; admin of $65,000; travel and accommodation of nearly $10,000; and $102,000 pay for group members fees, with most of that going to chairperson Sunny Kaushal's $92,000 paycheque. Mr Kaushal has defended the cost, saying that with $1.8 million available to the group, they're actually under-budget. Retail NZ chief executive and member of the Ministerial Advisory Group Carolyn Young spoke to Melissa Chan-Green. To embed this content on your own webpage, cut and paste the following: See terms of use.
