New Zealand's Commerce Commission will reduce interchange fees charged by major lenders, including Westpac Banking (ASX:WBC,NZE:WBC) and ANZ Group Holdings (ASX:ANZ, NZE:ANZ), to businesses on payments made through credit cards and foreign-issued cards.

The regulator said it expects the lower fees to result in reduced surcharges for consumers but warned it may consider further regulation to curb excessive surcharging.