Credit Card Benefit Cuts: Shoppers Losing Out

BNZ has reduced the number of interest-free days available on two of its credit cards from up to 55 days to 44 days, citing new interchange fee regulations as the reason for the change.

The adjustment, announced in February 2026, affects two of BNZ’s credit card products while the BNZ Lite Visa retains its 55-day interest-free period.

According to BNZ, the change followed a review of its credit card and rewards offerings prompted by new interchange fee rules introduced in December 2025. The bank stated it surveyed cardholders nationwide to understand their priorities, finding that rewards and points programmes were the most important feature when choosing a credit card, while increases to annual fees were the top concern.

BNZ said it used this feedback to guide targeted changes aimed at retaining rewards and avoiding higher annual fees while supporting the long-term sustainability of its credit card programme.

Interchange fees are charges applied when transactions are processed on a credit card. The Commerce Commission has expressed concern that these fees were too high and stated that its new settings, which lower the amount that can be charged, should save businesses an average of $500 per year.

Consumer NZ spokesperson Jessica Walker noted that banks are earning less revenue under the new interchange fee rules and are rethinking benefits accordingly. She explained that interest-free days represent a cost to banks, so reducing the number of days lowers their costs and increases the likelihood of earning interest from customers who do not pay their balance in full each month.

Walker also observed that despite the fee reductions, many businesses continue to apply surcharges to credit card transactions at levels set before the interchange fee changes took effect.

The changes reflect broader industry adjustments to regulatory shifts in payment processing fees, with banks balancing cost management against customer expectations for rewards and fee stability.