5 Oct 2009

Credit-card fees could save retailers millions

8:25 pm on 5 October 2009

The Commerce Commission says a new deal over credit-card fees could save retailers $80 million over the next three years.

The deal concerns the "interchange" fees retailers pay to banks for credit-card transactions. They can account for up to 2% of each card transaction.

The commission has reached agreement with all the financial institutions it took to court over accusations of price-fixing on such fees. The fees will now be set by competition among all the banks.

The Newmarket Business Association's Cameron Brewer says the increased competition will drive down retailers' costs and couldn't have come at a better time.

But he says retailers are operating in a tough environment and consumers wanting to see the savings passed on through price reductions will have to be patient.

The commission says it would expect to see the savings passed on to consumers through lower retail prices.