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Merchant fees explained


What is a Merchant Service Fee?

The Merchant Service Fee (or MSF) is charged for Visa, Mastercard or UnionPay transactions that are processed through your merchant facility. The MSF is calculated as a percentage of the dollar value of the transactions that are processed through your merchant facility.

EFTPOS transactions are free in New Zealand. There is no transaction fee when the cardholder inserts or swipes their EFTPOS or scheme card and chooses ‘Cheque’ or ‘Savings’ when making a payment. 

Credit cards and contactless payments have different charges depending on a range of factors. 

What makes up a Merchant Service Fee?

Your MSF will vary depending on many different things including what types of cards your customers use, how you process these cards and the size and volume of your transactions.

MSF is made up of five cost components:

Interchange fee
The interchange fee is the largest and most variable component of MSF. This fee is paid to the bank that issued the customer’s card (also known as the issuing bank).

The interchange fee is variable and is set by the card scheme (Visa, Mastercard or UnionPay). Many factors determine this fee for example the type of card, how you process these cards (e.g. tap, insert or swipe), and the country the card was issued in.

Scheme fee
This is the fee paid to the card scheme (e.g. Visa, Mastercard or UnionPay).

The scheme fee varies based on the card scheme, card type, country the card was issued in, and the transaction value. 

Network transaction fee
This fee is paid to the network provider. This fee varies depending on the network, but is a fixed amount per transaction.

Float costs
The float cost is a percentage-based fee that covers the interest cost that we incur to settle your funds to you, before we receive the funds from the issuing bank. 

ANZ acquirer margin
This covers ANZ operating costs and a margin.

Pricing options available

We offer a range of transparent pricing solutions to suit your business needs. Merchant Service Fees are debited from your nominated bank account every month.

The fixed MSF is specific to your business and its setup. ANZ provides separate contactless debit, and credit pricing for all of our merchants. Depending on your merchant facility you may also have a separate rate for processing eCommerce, mail or telephone transactions.

Fixed rates are calculated based on your average transaction value, card mix and the way the transactions are processed (e.g. insert or swipe vs. contactless).

For Interchange Plus, MSF is made up of two parts:

The actual interchange fee for the card type presented.

Plus a total margin to cover the 4 other cost components [CA1] related to processing the transactions.

Based on your business’s individual needs, Interchange Plus is also able to be split by scheme and card type for each transaction (for both pricing and statements). This gives a much greater level of detail.

The MSF rate on a Matrix is a variable rate, based on the sales volume and average transaction value processed through your facility during that month.

Scheme Interchange Reimbursement fees

Information about Interchange reimbursement fees for Visa, Mastercard and UnionPay can be found on the Business rates, fees and agreements page.

Talk to our Merchant Business Solutions team

Our dedicated expert can answer your questions and design a solution to meet the unique needs of your business.


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0800 473 453

Mon-Fri 8:30 am - 5 pm (NZT)