Kiwibank has its IT system operational after all internet banking, phone banking, and fund transfers between accounts stopped working about 12.30pm today.

Kiwibank spokesman Bruce Thompson is reported on Stuff at 1.57pm that everything was up and running again.

Credit card transactions had not been hit by the IT failure, he said, and neither had most eftpos transactions.

The only eftpos payments that would not have been possible were those where someone needed to transfer money between accounts before making the payment.

Thompson said Kiwibank's system had been operating out of Auckland, where an IT issue has arisen.

Speaking before the outage was fixed, he said: "We are transferring the operation back to Wellington. We have a team working on it now."

He apologised to customers for the inconvenience the outage had cause