The Commerce Commission has issued a draft decision to reduce fees for businesses accepting card payments. 

It's proposing an estimated reduction of around $260 million a year where costs are handed down from banks to process payments. 

The commission revealed in July that businesses incur $1 billion in fees to provide card payments. 

Chair Dr John Small told Heather du Plessis-Allan a few will be annoyed by it, but it's important they strike a balance. 

He says they've consulted widely on it and believe they're at a point where they can simplify these rates and bring them down. 

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