06:29 AM EST, 12/19/2024 (MT Newswires) -- (Updates with Visa's response in the sixth paragraph.)

Visa (V) and Mastercard ( MA ) will see a reduced fee paid by New Zealand's businesses when they accept their payments under a proposed draft decision issued by the Commerce Commission, the regulator said Wednesday.

The proposal would result in an annual reduction of 260 million New Zealand dollars ($149 million), the regulator added.

"We're also setting the clear expectation that payment providers and businesses should pass these savings on to customers," Commerce Commission's Chair John Small said.

Kiwi businesses incur roughly NZ$1 billion in fees annually when customers make their payments through Visa or Mastercard ( MA ), the Commission said.

The Commerce Commission is seeking feedback on this draft by Feb. 18.

"Visa is committed to working with the Commerce Commission and industry to ensure New Zealand's payments ecosystem is resilient, future-ready, and benefits businesses and consumers," a Visa spokesperson told MT Newswires in an email late Wednesday. "We are reviewing the announcement and look forward to responding further in due course."

Mastercard ( MA ) did not respond to MT Newswires' request for comment.