Why does payWave cost extra?

Asked by: Eveline Pfannerstill  |  Last update: June 10, 2026
Score: 4.9/5 (66 votes)

PayWave (contactless) payments often cost extra because they incur higher processing fees for merchants compared to inserting a card (EFTPOS), often ranging from 1% to 3.5%. These fees cover higher interchange rates from card networks (Visa/Mastercard) and, due to perceived higher fraud risks, a surcharge is passed to customers to offset these costs.

Are there fees for using payWave?

There are no fees for setting up or using the payWave feature on your card. However standard fees and charges may apply to our cards or card related transactions. For more information, please refer to our Fees and Charges document.

Is there a surcharge for payWave?

That means when you see a price on the shelf, it's the price you'll actually pay.

Can I disable payWave on my card?

Contactless payments (Visa payWave) are only available on credit cards or Flexi Debit Visa cards, and are turned on by default. You can turn contactless payments on or off in the BNZ app. If you don't have the BNZ app you can set it up yourself, or call us on 0800 275 269.

Is payWave the same as contactless?

payWave is a contactless payment technology that lets customers pay for goods and services by simply tapping their card, smartphone, or smartwatch on a payment terminal.

What's the cost of convenience? The hidden costs in payWave transactions | AM

26 related questions found

What is the 2 3 4 rule for credit cards?

The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule). 

Is payWave considered contactless?

PayWave is the most common, contactless payment system in Singapore. It works like contactless payments in the United States: tap your credit card on the terminal to pay.

Is it illegal to charge 3% credit card fee?

Yes, charging a 3% credit card fee (surcharge) is generally legal in most U.S. states and follows card network rules (like Visa's 3% cap), but it depends heavily on your location and requires strict adherence to rules, such as not surcharging debit cards, capping it at your actual processing cost (not to exceed 3% for Visa/4% for Mastercard), and providing clear customer notification. Some states (like Connecticut, Massachusetts, Texas) may have their own bans or restrictions, so it's crucial to check your specific state laws.

How long has payWave been around?

In October 2011, the first mobile phones with Mastercard PayPass and/or Visa payWave certification appeared.

How can I avoid credit card surcharge?

The easiest way to avoid card surcharges is to pay by cash. While businesses can charge a surcharge for paying by debit or credit cards, they can't charge a surcharge for paying by cash.

What happens if I use 90% of my credit card?

Using 90% of your credit limit creates a very high credit utilization ratio, which significantly hurts your credit score by signaling high risk to lenders, though you won't "overdraw" it like a bank account; it can also lead to higher interest rates (Penalty APRs), so it's best to keep utilization below 30%, ideally even lower, by paying down balances. 

What is the 15 3 credit card trick?

What Is the 15/3 Rule?

  • Make a credit card payment 15 days before the bill's due date. You might be told to make your minimum payment, or pay down at least half your bill, early.
  • Make another payment three days before the due date.

What states don't allow surcharges?

Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.

What is a good APR for a credit card?

A good credit card APR is generally below the national average (around 20-24%), with rates under 18% considered excellent, especially for those with good credit, while single-digit APRs are fantastic but rare, often found at credit unions, and 0% introductory APRs are great for financing large purchases. What's "good" depends heavily on your credit score, card type (rewards often have higher rates), and whether you pay in full monthly. 

Do I tip if there is a surcharge?

So, you may be wondering, do you tip on top of a service charge? In most cases, the answer is yes. Since a service charge is not guaranteed to go to the server themselves, leaving a tip is a great way to thank your waiter for their hospitality.

Is there a charge for using payWave?

National is banning PayWave, EFTPOS and credit card surcharges. This follows a recent announcement that the fees that businesses pay to accept card payments will be reduced, saving businesses an estimated $90 million a year. The ban ensures that these savings will flow through to consumers. No.

Is tapping your card safer than inserting?

Yes, tapping your card is generally considered safer than inserting it because it uses tokenization and encrypted one-time codes, preventing your actual card details from being exposed to the terminal and reducing the risk of skimming, keeping your card in your possession at all times, and often requiring biometric authentication with mobile wallets, though both methods are secure due to EMV technology. While both tap and insert (chip) use strong EMV security, tapping avoids physical contact with potentially compromised readers and keeps your data encrypted for each transaction, making it a superior choice for security and hygiene.