Retail watchdog says Kiwis 'absolutely' being rorted by contactless payment fees

A representative for New Zealand retailers says the Government needs to intervene in contactless payment fees as they are "absolutely" being rorted.

It doesn't cost consumers to tap their cards at Eftpos terminals for purchases under $80, as retailers are being forced to carry the cost of the technology.

First Retail's Chris Wilkinson told The AM Show retailers are paying 1.2 percent per transaction, compared to 0.6 percent in Australia and 0.2 percent in the United Kingdom.

It's gotten so high Burger King has opted to stop offering the service altogether across New Zealand and some small retailers can't afford to offer it in the first place.

Mr Wilkinson says there's one thing that is going to bring the fees under control - regulation.

"We think [legislation] is going to be necessary in New Zealand - that's what's driven the costs down in Australia and in the UK as well," he said.

According to Mr Wilkinson, banks and credit card companies that provide contactless payment - Visa and Mastercard - are blaming each other for the fees, while retailers are forced to pay through the nose.

"Banks tell us it's the credit card companies, it's their providers but they're both pointing the finger at each party," he said.

"We really need to get some clarity on that and I think it's now time for the government to step in and make some changes."