Latest news with #ConsumerNZ
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
Paywave costs should be passed on to customers
The Finance Minister says when a ban on contactless card payment surcharges comes into effect, businesses should pass on the cost to customers as they would any other business cost, if they can't absorb the bill. The government plans to ban surcharges on contactless card payments no later than May 2026. Commerce and Consumer Affairs Minister Scott Simpson announced the change on Monday afternoon, declaring: "That pesky note or sticker on the payment machine will become a thing of the past." "Shoppers will no longer be penalised for their choice of payment method, whether that's tapping, swiping or using their phone's digital wallet." The ban builds on the Commerce Commission's recent decision to reduce the interchange fees imposed on businesses for accepting Visa and Mastercard payments. Finance Minister Nicola Willis told RNZ that change has led to an average reduction in costs for a typical retailer - a small business - of about $500 each week. "So our concern has been, now that reduction has happened, how do we make sure that gets passed through to you, when you're at the shop. What's to stop the retailer just charging you the same fee even though their costs has dropped." Banning the paywave fee was the simplest and most transparent thing to do, Willis said. Businesses need to treat the interchange fee like any other cost in their business "and just include it in the price tag on the shelf", she said. "It'll make it easier for people to compare what they're really having to pay. Just think about how many times you've been at the counter and then suddenly you learn that it's a 2.5 or a 3.5 percent surcharge and that gets added to the price of whatever it is you're buying. That's not very transparent." The sector is warning prices may need to rise at restaurants and cafes due the ban. Asked if she thinks the ban will lead to inflationary prices, the minister said "I think that overall, people will charge the price that they think they can get away with". The change doesn't include international credit card payments or online payments. Willis said these payments were usually much more expensive to process and people using these systems have to pay a bit more because they are protected from things like online scams and fraud. Consumer NZ chief executive Jon Duffy told RNZ with a reduction in the interchange fee, businesses would be making a profit off the surcharges if they remained in place. "Retailers still pay a small amount ot offer those services, we think that once... the decrease comes into effect it will be less than 1 percent of the total cost of the transaction," Duffy said. Many businesses would absorb this into the prices though there may be some who need to increase prices to cover the cost, he said. "But it would be just the same as if their... power bill or their rent went up." Consumer NZ was a bit disappointed online transactions were not included but it was understandable for now, he said.
NZ Herald
2 days ago
- Business
- NZ Herald
Could you get a cheaper plan for electricity? Most companies won't tell - Power to the People, part 2
You can use the Herald interactive graphic below to see which companies will do a best-plan check, which won't, and their responses when asked why not, along with their answers to other questions about energy hardship. Some companies said they checked best plans for customers in a different way - others claimed it was too hard to find the cheapest price for each customer. Consumer NZ says nine out of 10 people could pay less for power if they changed plans or providers. So while prices have jumped and winter spikes our usage, advocates say power companies have a responsibility to ensure customers are getting the best deal. And while Consumer runs its Powerswitch tool to compare prices and plans in the market, Powerswitch manager Paul Fuge told the Herald it should not be a customer's responsibility to understand the market so they could decide on the best plan for themselves. Consumer's 2025 annual energy survey found 20% of people have had difficulty paying their power bill in the past year. Statistics New Zealand data for June showed power prices had jumped 10.4% in a year. And MBIE's last energy hardship report in 2022 showed 110,000 households could not keep warm. Fuge said many people were paying more than they needed to and would not even know they could get a better deal. 'Our concern is particularly for those who are unaware that they could be paying significantly less." He said 93% of people who used Powerswitch found potential savings of $100 or more, and the average savings from switching was between $400 and $500 a year. 'For households already struggling, paying hundreds more than necessary for a basic service like electricity is something we should be working to change.' Fuge said 12% of Powerswitch users had given feedback saying they had used the information from the comparison tool to negotiate a better deal with their existing retailer. Consumer NZ's Paul Fuge says regular plan checks should be standard practice across the industry, not the exception. Photo / Supplied 'That's a great result. And it shows the opportunity is there, but the responsibility shouldn't fall solely on consumers to seek it out. Regular plan checks should be standard practice across the industry, not the exception.' Jake Lilley, from financial mentoring charity Fincap, said retailers had a responsibility because they were providing an essential service. 'Energy is an essential service, and there shouldn't be that loyalty tax built into it. 'There's also an information asymmetry that's involved; providers should have a better overview of what's likely to be the best plan. 'There are always some variables, but they should be helping their customers to get onto that plan or even potentially defaulting people to that best plan, because they have the ability to unilaterally change the price. Why don't they apply savings rather than putting prices up?' Fuge said people often did not realise their power companies were not proactively checking and informing them if they were on the best plan. 'We often find that many people assume their power company is already doing this for them. In reality, some retailers do it proactively, some only if asked. What really frustrates people is finding out—not only that they could save by switching providers—but that they could have been on a cheaper plan with their current provider." Says Fincap's senior policy advisor Jake Lilley: 'There's also an information asymmetry that's involved; providers should have a better overview of what's likely to be the best plan.' Photo / Fincap The Herald has worked with advocacy group Common Grace to analyse each power company's response to a list of questions on energy hardship. Common Grace's co-director Kate Day said the price check responses left her disappointed. 'Only two companies checked before winter. So Flick and [prepay service] Wise both said that they did check before winter for all their customers, and actually Flick had a practice of checking proactively every three months, which has been something they've promoted on their website. 'Among the other companies, there were some that do have at least a process of checking annually, that's Genesis, Frank, Ecotricity and Toast. 'But among the other companies, they never do this proactively, unless when they're required under the Consumer Care Obligations to check for customers who directly ask them, or for people who are in hardship. 'In the context of rising prices and predictable increased hardship, a very basic step they can take is just to make sure that all their customers are definitely on the cheapest plan that they offer to prevent people from falling into debt, being overcharged, and becoming further entrenched in hardship. 'If companies really care and want to reduce harm this winter, that could have been something that they chose to do.' 'The consumer knows best' However, the chief executive of the organisation representing generators and retailers said it was difficult to identify the best plan, and forcing companies to do so could just end up hurting customers. 'Finding the 'right' plan for a customer is not as simple as finding the cheapest option 'today',' Bridget Abernethy, chief executive of Electricity Retailers' and Generators' Association of New Zealand (Erganz), told the Herald. 'Many different plans are now available to consumers, making it difficult for retailers to predict the best option for each customer based solely on usage statistics. A household's circumstances and behaviours will influence the best plan choice for that household, so the consumer often makes the best plan choices through engagement with a retailer or by using the Powerswitch tool. Bridget Abernethy, chief executive of Erganz, says it is difficult for power companies to identify the best plan for their customers, and forcing companies to move customers could just end up hurting them. Photo / Supplied 'Retailers will always discuss the available plan options with customers who inquire, but price is not always the primary factor in plan selection.' Abernethy said mandating retailers to move customers onto a cheaper plan automatically could lead to unintended consequences, like a customer suddenly being moved to a high-user plan. 'Customers may suddenly change from low to high electricity users due to a change in circumstances, or customers could end up paying more if they are switched to a time-of-use plan but didn't shift their usage to outside of peak times,' she said. Abernethy said the best way for retailers to make sure their customers were on the right plans was for those customers to call and discuss it. She acknowledged it could be hard for people to understand their power bills, which was why the industry had invested in EnergyMate, an in-home coaching service to help people get the most out of electricity services. What the power companies say Power company Flick, now owned by Meridian, checks every 90 days if its customers are on the best plan and will tell them if they could be on a better one. These quarterly checks include looking at the times of day each customer typically uses power, and whether they would be better off on a 'flat' or 'off-peak' plan. 'This [Best Plan Promise] initiative is one we proudly offer to all our customers, and we would welcome more electricity retailers taking similar action in Aotearoa New Zealand,' Naz La Gamba, head of Flick Electric, told Common Grace and the Herald in March. In May, Flick was sold to Meridian. It is not accepting new customers and its current customers will be transferred to Meridian. When asked what would happen to the Best Plan Promise under new ownership, Meridian said, 'all Flick plans end as soon as those customers are migrated to Meridian'. Wise, which also did a best-plan check, said it would continue to do so and would make sure all its customers were on the most suitable plan for their usage before June 1. Genesis said it, along with its subsidiaries Frank Energy and Ecotricity, did an annual check, and this was scheduled for August. The company said its customer service staff also reviewed accounts when customers phoned. Contact said, 'Customers can also track their usage on an hourly, daily or monthly basis through our customer app, EnergyIQ. They can also access a forecast on upcoming bills based on current usage, along with energy-saving tips, insights and weather forecasts.' Meridian said it, and its subsidiary Powershop, would not check unless customers called to ask or a customer was in hardship. Mercury said it wouldn't, but it 'endeavours to ensure that any customer who is receiving support from our Here to Help team is on the plan that best suits their energy usage and personal needs'. Pulse Energy Alliance also wouldn't, but said, 'When engaging with our customers, we do check to make sure they are on the right plan for their home. Pulse pointed to its recently launched Power Shift plan with half-price weekends and discounted rates. Nova wouldn't do a best-plan check, but said its support teams provided 'a personalised approach when dealing with customers who contact us for advice or are experiencing payment difficulties'. Electric Kiwi said its plans were 'already deliberately simple'. Switch Utilities gave a similar answer, pointing to one plan for low users and another for standard users. Electric Kiwi said: 'Often the best prices can only be achieved by behaviour change. For example, our MoveMaster plan has very large incentives for off-peak usage, but could be the wrong plan for a customer who is not aware of, or able to access, the benefit from this. We also provide usage tracking and tools to help people choose what suits them best.' And Switch said, 'We ensure people are on the correct plan at sign up, and allow people to switch between low and standard as they need. Most people won't need to change often or at all, unless their usage patterns change remarkably.' Toast also pointed to its simple two-plan structure, but said it does check its customers' usage once a year and when they are first signed onto a plan. 'We check in spring as this gives us a good lens to gauge last winter's use [which effectively dominates the annual usage]. 'As we have a very simple offering, we would want to be sure customers are either well under or well over the low/standard user threshold before recommending that they change plans. Contact's response echoed Abernethy's: 'To compare past energy use against current plans is not a one-size-fits-all approach'. 'Circumstances can change, such as a change of address, a new baby, a new job, or a change of numbers in the household. Our Time of Use plans give customers free energy in return for off-peak use.' Experts say it shouldn't be difficult Fuge said energy providers had 'all the necessary information' to check if their customers were on the best plan. He said there was little excuse for the majority of companies not doing it. 'They absolutely can – and they should. It shouldn't be difficult at all,' he said. 'If Consumer NZ can do it through Powerswitch – often with less data than retailers have access to – then there's no reason retailers can't do the same. 'Providers have all the necessary information: their customers' usage history and the details of their own plans. The capability is certainly there.' And Fuge said that comparing a customer's past usage to current usage was often just a distraction. 'What really matters is matching a customer's usage pattern –whether past or present – to the pricing structure that offers them the best value. Most people's electricity use doesn't change dramatically month to month, and using that data to check whether they're on the most cost-effective plan is both possible and reasonable. Paul Fuge from Consumer NZ says energy providers have 'all the necessary information' to check if their customers are on the best plan. Photo / 123RF 'So yes, in our view, there's little excuse. Retailers could and should be more proactive in helping customers avoid paying more than necessary. Relying on customers to navigate complex plans or monitor shifting tariffs on their own isn't good enough, especially when many households are already under financial strain.' Fuge said smart meter data, which captured usage on a half-hourly basis across the year, along with modern data analysis tools made it 'entirely feasible' for retailers to do a best-plan check. 'This kind of analysis is well within the capabilities of all major electricity retailers,' he said. 'Genesis and Toast say they carry out annual reviews, and that's a good thing. Toast's reasoning– that winter usage dominates the annual profile – makes sense from a technical standpoint. Winter is generally the highest cost months for households, so analysis in spring would offer a full view of the previous winter's consumption." 'Flick's approach shows it's entirely possible. The tools and data are there, and it's well within the capabilities of all major electricity retailers to regularly review customer plans against usage and recommend better options. Fuge noted Flick had the highest customer satisfaction score among retailers in Consumer's most recent survey, data he said was unsurprising. 'It is a shame that the two retailers with the highest customer satisfaction scores – Flick and Frank Energy – have both announced they are leaving the market.' And reacting to those providers who pointed to the simplicity of their plan structures, Fuge said this could be 'an excuse for inaction'. He added, 'It's good that consumers have a choice – some value simplicity and may knowingly pay a little more for a straightforward, easy-to-understand plan. Others are quite happy to engage with more complex pricing structures if it means saving money. Fincap's Jake Lilley says if power companies find it hard to look at a customer's usage and figure they'd be better off on another plan, those customers will have an even harder time. Photo / NZME 'But simplicity shouldn't be used as an excuse for inaction. Even among 'simple' plans, there can still be significant price differences depending on a customer's usage pattern. Retailers have a responsibility to help customers understand those differences.' Lilley, from Fincap, said if a retailer believed it was too difficult to check if a customer was on the best plan, it would be even more difficult for a customer to check themselves. 'It points to issues with the whole set-up of the market if an energy provider is feeling they can't do that, because you can imagine then how hard it is to the average punter out there who's trying to read an energy bill and make sense of it and make sense of what to do next. 'Energy retailers should be experts in these things and be able to help their customers rather than all of us having to be experts to engage with an essential service and get a fair price from it. 'People are juggling a whole lot, life is messy, and then having to constantly keep an eye on the price of your essential services - there's another burden on people that they really shouldn't have.' Lilley said people should end up on the best plan by default. 'Even I, as a person working for a decade looking at energy affordability, struggle to navigate and find the exact best price for me. I can maybe get an idea of what's reasonable.' Monday: As Kiwis battle rising electricity bills, campaigners call for change Tuesday: Could you get a cheaper plan for electricity? Most companies won't tell Wednesday: Major company moves to stop disconnecting customers in hardship Thursday: Why our biggest power companies should be broken up (and why they shouldn't)
Scoop
3 days ago
- Business
- Scoop
Consumer NZ Is Stoked To Learn Surcharges Will Be Banned
From May 2026, New Zealanders will be able to tap their card or phone without being charged those pesky, excessive and sometimes hidden surcharges. An amendment to the Retail Payment System Act will put an end to excessive, hidden and unavoidable surcharges, which cost New Zealanders an estimated $65 million a year. Jessica Walker, acting head of research and advocacy at Consumer NZ, is thrilled to see surcharges scrapped because it will put millions back into the pockets of New Zealanders, and make accepting payments much simpler for merchants, too. 'We've received close to 300 complaints about excessive surcharges (over 2%) in the last few years. In some cases, card payment surcharges were as high as 25%. We've even had complaints about surcharges being applied to EFTPOS transactions. 'We've been calling for surcharge regulation since 2017 and, recently, urged the Commerce Commission to consider an outright ban. Although surcharge guidelines were in place, they clearly weren't working. "The whole surcharge situation here in New Zealand is currently a mess. Surcharges for debit and credit cards are banned in the United Kingdom and European Union, and the Reserve Bank of Australia recently proposed a surcharge ban – so this brings us nicely in line with other countries," says Walker. 'The ban is a no-brainer. These new rules will bring an end to a very messy situation!' What consumers need to know The ban will only apply to debit, EFTPOS, Visa and Mastercard payments, so if you're paying with another card, such as an AMEX or foreign-issued card, you may still have to pay a surcharge. The ban also won't apply to prepaid gift cards. Online payments are excluded. This is disappointing because your flight or accommodation booking or any other online purchases could still attract a surcharge. Australia is considering making online payments part of its surcharge ban. We'll be calling for similar rules here. The cost of your coffee shouldn't increase by that much, if at all. If merchants choose to increase their prices to cover their payment costs, any increase should be very minimal because interchange is being lowered which will reduce the cost to businesses of accepting payments.
RNZ News
3 days ago
- Business
- RNZ News
Surcharges on in-store payments, including PayWave, to be banned
Surcharges on PayWave will be banned. Photo: The government plans to ban surcharges on card payments in-store, saving shoppers from being stung with surprise fees when paying with contactless technology. Commerce and Consumer Affairs Minister Scott Simpson announced the change on Monday afternoon, declaring: "That pesky note or sticker on the payment machine will become a thing of the past." "Shoppers will no longer be penalised for their choice of payment method, whether that's tapping, swiping or using their phone's digital wallet." Legislation is expected to be introduced to Parliament by the end of the year, with the ban to kick into effect no later than May 2026. The proposed law would cover most in-store payments made using Visa and Mastercard debit and credit cards, as well as EFTPOS, but not online purchases or other international card schemes. The move follows growing public frustration at the cost and transparency of such surcharges. Retailers are increasingly using them to recover merchant service fees charged by banks and payment providers, but the fees are often added without clear explanation. The Commerce Commission estimates New Zealanders are paying up to $150 million in surcharges each year - including $45 to $65 million in what it considers excessive charges. In March, Consumer NZ called for an outright ban , citing hundreds of complaints about fees being too high, confusing or oblique. Both Mastercard and Visa have also supported proposals for a ban . Retail NZ has previously argued businesses did not like charging extra but should have the right to recover payment costs. It called for more clarity from banks about the fees charged for different services. The ban builds on the Commerce Commission's recent decision to reduce the interchange fees imposed on businesses for accepting Visa and Mastercard payments . Interchange fees make up approximately 60 percent of merchant service fees. "A ban on surcharges means no more surprises for people who currently feel like they're being charged to use their own hard-earned money," Simpson said. "It means they can make a purchase knowing exactly what they'll pay, and how they'll pay it." The changes would bring New Zealand into line with the United Kingdom and the European Union, where such surcharges are already prohibited. Australia still allows surcharges but requires them to reflect the actual cost to retailers. The Reserve Bank of Australia has also recently proposed an outright ban on surcharges for EFTPOS and debit and credit card payments. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
5 days ago
- General
- NZ Herald
How the humble air fryer took over Kiwi kitchens – and what we're cooking in it now
In 2022, demand surged in the lead-up to Christmas, and shops struggled to keep up with sales. A year later, Consumer NZ released a detailed buying guide to help shoppers compare the swelling number of models on the market, including larger, oven-style versions big enough to cook a roast chicken. Fast-forward to now, and the trend hasn't fizzled. If anything, it's evolved. What we're cooking now On TikTok, a search for 'air fryer baked oats' returns thousands of short videos featuring ramekins of mashed banana, oats, milk and baking powder, cooked at 180C until puffed and golden. The result is somewhere between a muffin and porridge – a warm breakfast for one with minimal mess. Chocolate chips, peanut butter and berries are popular additions. Other recipes trending this winter include molten chocolate cakes, croissant bakes, cheesy breakfast wraps and stuffed capsicums. On the savoury side, creators are showing off 15-minute pork roasts, skin-crackling chicken thighs, and air-fried gnocchi with crispy edges. Reddit threads and Facebook groups devoted to air fryer cooking are full of creative ideas, from drying orange slices to reviving day-old pizza and finishing off sourdough loaves. Whether it all tastes as good as it looks is another matter, but for many, the joy is in the trying. More than just convenience Part of the air fryer's success lies in how it aligns with how many people now cook: often solo or in small households, and without the time or inclination to use a full-sized oven. It heats quickly, cooks quickly and doesn't leave a sink full of dishes in its wake. Independent tests from UK-based consumer groups show that air fryers can use less than half the electricity of a conventional electric oven when preparing small to medium meals. As energy costs rise, that efficiency can make a noticeable difference to household bills. Air fryer ownership has risen sharply in Australia and New Zealand since 2020, driven by consumers prioritising speed, cost-effectiveness and healthier cooking methods. That shift is visible in local food media and retail recipe collections, where air fryer instructions now sit comfortably alongside oven and stovetop methods. From nuggets to lava cakes While early air fryer content focused on simple swaps – think nuggets, wedges and spring rolls – the new wave is more ambitious. Some creators are tackling pavlovas and bread puddings, while others use the appliance to streamline traditional favourites: shepherd's pie with a mashed kumara topping, or roast vegetables done in half the usual time. Of course, it has its limits. The air fryer isn't a magic wand. Large casseroles and liquid-based recipes are still better suited to a conventional oven or slow cooker. And some of the more elaborate desserts, such as lava cakes in silicone moulds, can be fiddly and prone to failure. 'Frying' without oil was the air fryer's biggest pull for those looking to limit fat in their diets. Photo / 123RF But for everyday use, especially in winter, the appliance has become an unlikely hero. It suits a generation of cooks who want fast results, low energy use and fewer dishes – and it taps into the quiet satisfaction of producing something hot and crispy with just the push of a button. An air fryer is no longer a novelty; it's shorthand for a practical, flexible, and modern approach to home cooking. As winter settles in, more New Zealanders are reaching for theirs not just for after-school snacks or reheating pizza, but for solo breakfasts, weeknight roasts, and the kind of crispy, warming dinners that keep power bills down and satisfaction levels up. And while the internet may still have a few unhinged hacks left to share (air-fried scrambled eggs, anyone?), most people are sticking to what the appliance does best: fast, hot food with minimal mess. Herald contributor Nikki Birrell has worked in food and travel publishing for nearly 20 years. From managing your kitchen to cutting costs, she's shared some helpful advice recently, including how to prep your barbecue for summer grilling, gourmet hacks for elevating budget ingredients and what toppings to choose for different crackers.
