Concerns the Commerce Commission's stripping millions from payment system innovation

The regulator's reducing interchange fees on Visa and Mastercard payments for businesses - saving them about 90 million dollars a year.

Typically these costs are passed onto consumers - through surcharges and higher product costs.

But Visa New Zealand Country Manager Anthony Watson says we risk inviting more fraud - and reducing innovation.

He says New Zealand's already lagging behind the rest of the world in payment infrastructure and innovation - and this was an opportunity to ensure investments are going to the right places.