The Commerce Commission's proposing a 0.2% interchange rate (down from the current 0.8% level) for domestic Visa and Mastercard credit card transactions. Interchange is used to funds all credit cards rewards and loyalty programs. The proposed levels in New Zealand are lower than other markets where the regulator moved against interchange (Australia at 0.5% and the UK at 0.3%). Interchange cuts in those markets devalued (Australia) or eliminated (UK) the bank loyalty offerings on credit cards.