Payments NZ Forcing The World’s Most Aggressive Removal Of EFTPOS Terminals, Says EDANZ

Payments New Zealand is enforcing the most extreme and aggressive removal of EFTPOS terminals anywhere in the world, according to the EFTPOS Dealers Association of New Zealand (EDANZ). The association is calling out Payments NZ for pushing end-of-life (sunset) dates 5 to 7 years earlier than any comparable jurisdictions globally - including the PCI Security Standards Committee the world wide governing body, plus Australia, the United States, and all G7 nations.

"Perfectly Secure Devices Are Being Thrown Out"

Payments NZ is demanding that 19,000 EFTPOS terminals be scrapped by 30 April 2026—despite these same PCI PTS v4.x devices being certified and secure for use in all countries including Australia for example until 31 December 2033, a full 6.5 years longer.

COST to Business – Over $14 Million

And it’s not an isolated event. Between 2023 and mid-2024, 60,000 v3.x devices were forced into early retirement here in New Zealand. Globally, those exact devices are still approved for use in other countries right now and until 2030. COST to Business – Over $45 Million

Looking ahead, another bombshell looms. In 2029, Payments NZ has planned the forced sunset of 90,000 v5.x EFTPOS terminals—60,000 of which were only just installed as part of the previous device purge. These same v5.x models are still being sold in New Zealand as compliant, and will remain in use overseas until 2036. COST to Business – Over $70 Million

“No Other Country in the World is Doing This” – EDANZ

EDANZ has, after extensive research, found no other international regulatory body enforcing this level of premature terminal retirement. Identical EFTPOS models are still approved in all G7 countries and Australia for 5 to 7 years longer than in New Zealand. "This policy is not just aggressive—it's reckless," says Steve Batey, Chairman of EDANZ. "It’s wasteful, anti-business and completely misaligned with global best practices."

Outdated Rules and No Oversight

EDANZ also claim Payments NZ are using 12-year-old guidelines (as per their own admission) that has not been updated in line with global security improvements. As a company owned by New Zealand’s eight major banks, Payments NZ functions like a quasi-regulator/governing body but EDANZ believe they operate without the appropriate government oversight in this area.

“They are not even following their own rules,” Batey says. “These guidelines are outdated, unfit for purpose, and massively out of step with the rest of the world.”

This Policy is Costing Everyone – and these costs will land with Consumers

These repeated, premature replacement cycles from 2023 through to 2029 and beyond will impose enormous, compounding capital costs on industry, which are ultimately passed down to small businesses and consumers.

EDANZ argues that a common-sense, globally aligned approach is needed where devices are replaced as per world-wide guidelines. Replacement via organic churn, with wear and tear, business closure, or demand for new features, also Non Deployment dates that stop older terminal being recycled – That should be enough say EDANZ.

"This is not only bad economics—it's an environmental disaster," Batey adds, pointing to the increasing volume of EFTPOS devices being sent to landfill as e-waste, many of them still perfectly functional.

EDANZ Calls for Immediate Government Intervention

EDANZ has submitted a formal complaint to Payments NZ and filed evidence with Government Ministers Scott Simpson (Minister of Commerce) and David Seymour (Minister of Regulation), urging immediate action.

The association is demanding that the Commerce Commission, the Reserve Bank, and other government departments be granted formal oversight of Payments NZ moving forward.

“The banks cannot be allowed to make self-serving decisions that burden the rest of New Zealand,” Batey states. “The current system is broken. This needs fixing—now.”

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