New Zealand Commerce Minister Paul Goldsmith has revealed the Government is investigating retailer concerns that consumers and shop owners are being overcharged by banks and Visa and Mastercard for using their credit and debit cards, and whether it should start capping interchange fees. Goldsmith told reporters in Parliament he had asked officials to report back to him after Retail NZ, a lobby group for 5,000 retailers, produced a report in November last year saying that New Zealanders were paying NZ$380 million a year in undisclosed fees for credit cards and contactless cards in particular. "After considering the study, and following a meeting in February, Finance Minister English and I asked officials to look into the issues it raised," Goldsmith said.He said officials had provided a report on the issue in July and the Government was now considering it. He said the Government was likely to publish an issues paper for consultation "in the coming weeks.""The report focuses on interchange fees charged to businesses, but does look at surcharging to consumers as part of a wider discussion," he said."The report also considers how New Zealand's retail payment systems are performing, the level and transparency of fees and the current state of innovation in the system." A shift in use from EFTPOS bank cards (which are free for retailers and consumers to use) to Visa and Mastercard cards (which are often contactless) has fuelled retailer and consumer concerns about interchange fees by banks and card scheme providers.Retail NZ's research found New Zealand retailers were paying 70c per transaction for a NZ$50 payment through a credit card transaction, while retailers in Britain and Australia were paying 50c and 42c respectively. Unlike in Australia, where credit card fees are regulated by the Reserve Bank of Australia, New Zealand's credit card fees for consumers and merchants are not regulated and disclosure is not standardised. There are no caps on interchange fees. Retail NZ cited research it commissioned forecasting these fees would rise to NZ$711 million per year by 2025.Retail NZ called at the time for a regulation of credit card and debit card fees being charged by Mastercard, Visa and banks, saying there needed to be more oversight and transparency."It looks like New Zealanders are probably paying too much, particularly when costs are compared internationally, and we want to see greater transparency and oversight," Retail NZ's public affairs manager Greg Harford said at the time. Goldsmith also focused in his comments on the shift from free EFTPOS to contactless cards without fees being disclosed."Currently, for example, consumers have access to EFTPOS which has zero fees. However, if the use of EFTPOS declines, the public could face more fees on alternative transaction models," he said. "As Commerce and Consumer Affairs Minister I am focused on ensuring New Zealanders get a fair deal on transaction fees while at the same time encouraging innovation."Retail NZ said its second annual survey of fees charged to retailers found Visa and Mastercard merchant service fees rose to 1.7 per cent from 1.4 per