Merchant service fees

We offer several pricing options depending on your requirements and preferences. Find out more about merchant service fees and which option suits you.

What are merchant service fees (MSF)?

Merchant service fees are charged for certain types of card transactions processed through your merchant facility. A percentage of each sale is paid to Westpac for the processing of your monthly transactions.

Your MSF will be different depending on things like what type of business you have, how many transactions you process, and what card types you accept. See below for details on what fees makes up a MSF.

What makes up the MSF my business will pay?

Interchange Fees:

Interchange is the fee that the cardholder's bank (the "Issuer") charges for the provision of card payment services, this can include card holder services, reward schemes, processing costs and fraud protection.

This is a variable fee set by the card schemes and depends on the nature of the transaction, card type, merchant industry and processing environment for the transaction. For example, a contactless card transaction may have a different fee to a chip and PIN transaction. The interchange fee can be calculated as a percentage of the transaction value, or set as a fixed dollar amount.

Interchange makes up the bulk of the MSF.

Acquiring Fees:

Scheme Fee:

The fee charged by Visa, Mastercard and Union Pay for the provision of the card payment services.

Switch Fee:

The fee charged by the payment network or e-commerce gateway to process a transaction, for example Paymark, Verifone or Payment Express.

Westpac Fee:

The fee the acquiring bank (Westpac), charges for the provision of card payment services, this can include merchant support, fraud prevention and authorisations.

What payment types and methods of payment incur MSF?

MSF fee types

 

What pricing options are available?

One MSF Rate

 

Fixed: With one MSF applied to all transactions, you'll pay the same rate every month. 

Variable: Whereby the MSF rate will change depending on the mix of total transaction value and average transaction size.

Interchange plus unbundled

 

Interchange Plus (unbundled): The merchant is charged two separate rates on each transaction. A rate for the interchange (issuer) charges, and a separate rate for acquiring.

Examples of merchants and their pricing

ic account personal I have a mobile coffee business, I need to take payments on the go. Westpac’s Get Paid solution has a fixed pricing plan which works well for me. I can take payments anywhere. I have certainty of the merchant rate.
ic account partnership I have a start up. I am unsure what volumes my business will do throughout the year. I need to get setup quickly and start trading. A variable pricing plan will offer me flexibility as my business grows, and I gain a better understanding of my business and customers.
ic account company I have a mature business operating in 20 locations throughout the country, I like the transparency & insight I get through an Interchange Plus fee, such as the card types and my customers preferred method of payment.

Westpac card interchange fees

Below you'll find specific details on interchange fees for Westpac Mastercard and Westpac Visa.

The following interchange fees apply to New Zealand domestic retail purchase transactions* where a Westpac NZ issued Mastercard card or Westpac issued NZ Visa card is used (and including transactions where Westpac is the acquirer) for the period 17 April 2011 until amended.

*A domestic retail purchase transaction is one where the acquirer and issuer of the card that is used are both located in New Zealand.

 

Mastercard domestic interchange fees - Consumer credit and commercial products
Fee programmeRate
Charities
0.00%
Strategic Merchant 1
0.50%
Strategic Merchant 2
0.60%
Strategic Merchant 3
0.70%
Strategic Merchant 4
1.10%
Strategic Merchant 5
1.50%
Contactless (excluding Commercial Cards)
0.50%
Government & Utilities
0.70%
Petroleum
0.60%
Education & Learning
0.80%
Recurring Payments
0.90%
Consumer Super Premium 1
2.05%
Consumer Premium
1.90%
Commercial
2.10%
Consumer Electronic
0.90%
 Consumer Standard
 
 1.65%

 

Mastercard domestic interchange fees - Consumer debit products
Fee programmeRate
Charities
0.00%
Contactless Micropayment (< =NZD 15)
NZD $0.004
Contactless Strategic Merchant 1
NZD $0.060
Contactless Strategic Merchant 2
NZD $0.100
Strategic Merchant 1
0.30%
Strategic Merchant 2
0.35%
Strategic Merchant 3
0.40%
Strategic Merchant 4
0.90%
Strategic Merchant 5
1.10%
Contactless
0.40%
Government & Utilities
0.50%
Petroleum
0.50%
Recurring Payments
0.70%
Consumer Electronic Debit
0.50%
Consumer Standard Debit
1.25%

 

Mastercard domestic interchange fees - Consumer prepaid products
Fee programmeRate
Charities
0.00%
Contactless Micropayment (< =NZD 15)
NZD $0.004
Strategic Merchant 1 - Prepaid
0.40%
Strategic Merchant 2 - Prepaid
0.40%
Strategic Merchant 3 - Prepaid
0.40%
Contactless
0.40%
Government & Utilities
0.50%
Petroleum
0.50%
Recurring Payments
0.70%
SecureCode - Merchant UCAF
1.00%
SecureCode - Full UCAF
1.20%
Commercial Prepaid
1.50%
Consumer Electronic Prepaid
0.50%
Consumer Standard Prepaid
1.30%

 

Visa domestic interchange fees - Consumer credit products
Fee programmeRate
Industry Programme - Government & Utilities
NZ$0.70
Industry Programme - Insurance
NZ$1.00
Industry Programme - Charities
0.39%
Industry Programme - Recurring Payment
0.70%
Strategic Merchant 1
0.50%
Strategic Merchant 2
0.55%
Strategic Merchant 3
0.60%
Strategic Merchant 4
0.70%
Strategic Merchant 5
0.80%
Strategic Merchant 6
0.98%
Electronic
0.85%
Standard
1.25%
Platinum Electronic Credit
1.85%
 Platinum Standard Credit
1.85%
 Signature Electronic Credit
1.97%
 Signature Standard Credit
1.97%
Classic/Gold Contactless
0.85%
Platinum Contactless
1.45%
Signature Contactless
1.57%

 

Visa domestic interchange fees - Consumer debit products
Fee programmeRate
Government & Utilities Standard Rate
NZ$0.70
Industry Programme - Charities
0.39%
Strategic Merchant Card Present Rate 1
NZ$0.02
Strategic Merchant Card Present Rate 2
NZ$0.03
Card Present Rate 3 
$0.04
Strategic Merchant Card Present Rate 4
$0.05
Strategic Merchant CNP rate 1
0.50%
Strategic Merchant CNP rate 2
0.55%
Strategic Merchant CNP rate 3
0.60%
Strategic Merchant CNP rate 4
0.70%
Strategic Merchant CNP rate 5
0.80%
Strategic Merchant CNP rate 6
0.98%
Insurance Standard Rate
NZ$1.00
Recurring Payment Standard Rate
0.70%
Electronic
0.30%
Standard Rate (Card Not Present & Paper)
1.10%

 

 

Visa domestic interchange fees - Consumer prepaid products
Fee programmeRate
Strategic Merchant - Card Present rate
0.39%
Strategic Merchant - CNP rate 1
0.50%
Strategic Merchant - CNP rate 2
0.55%
Strategic Merchant - CNP rate 3
0.60%
Strategic Merchant - CNP rate 4
0.70%
Strategic Merchant - CNP rate 5
0.80%
Strategic Merchant - CNP rate 6
0.98%
Industry Programme - Charities
0.39%
Industry Programme - Government & Utilities
NZ$0.70
Industry Programme - Insurance
NZ$1.00
Recurring Payment
0.70%
Electronic
0.60%
Standard Rate (Card Not Present & Paper)
1.25%

 

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