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The National Consumer Commission has raised concerns about retailers, particularly independent traders and spaza shops, adding extra fees of R2 to R10 on purchases made via point-of-sale machines. The commission issued an advisory reminding businesses that the Consumer Protection Act prohibits charging more than the displayed price based solely on the consumer's payment method, comparing POS costs to other business expenses such as transporting stock. Cash withdrawal related complaints may fall under the banking ombud's jurisdiction.
South Africans who prefer tapping their bank cards rather than carrying cash are being urged to pay attention to their receipts, after the National Consumer Commission raised concerns about retailers adding extra charges to card purchases.
According to NCC spokesperson Phetho Ntaba, the commission has received complaints from consumers who were charged additional amounts simply because they paid using a card at a point-of-sale machine. The complaints have largely involved independent traders and spaza shops, with the additional fees reportedly ranging from around R2 to R10, depending on the transaction, as perNtaba said the Consumer Protection Act requires suppliers to charge consumers the price that has been displayed.
The NCC has consequently issued an advisory to retailers about adding fees specifically because a customer chooses to pay by card. For consumers, the issue is particularly important because card payments can offer a safer alternative to carrying cash. Ntaba acknowledged that not every business owner may be deliberately trying to take advantage of customers. Some may simply have invested in POS machines to make payments more convenient and secure before attempting to recover the associated costs through transaction fees.
‘It cannot be the consumer’s responsibility to pay for that service,’She compared POS-related costs to other ordinary expenses businesses face, such as transporting stock from wholesalers. That means, according to the NCC’s position, a shop should not add another R2, R5 or R10 to the displayed price of everyday items such as bread or milk merely because the customer uses a bank card.
Ntaba said cash withdrawals can fall under different considerations and may need to be addressed in the context of the banking ombud. The NCC’s warning specifically concerns additional charges attached to the purchase of goods and services.
‘As far as goods and services are concerned, based on the Consumer Protection Act, they cannot levy that extra fee,’Consumers are also being reminded that businesses must clearly display the prices of products they sell. Prices should be displayed either directly on the product or somewhere next to it, allowing shoppers to know the expected cost before making a purchase. Businesses do not necessarily need expensive or sophisticated signage to comply.
The important point is that customers should be able to see the price before completing the transaction. Anyone who encounters an additional card fee on a purchase, or finds products being sold without properly displayed prices, can report the matter to the NCC. The commission accepts complaints through its contact centre, social media channels and its website, including its e-services platform.
Ntaba said reporting these practices gives the commission an opportunity to educate businesses about their obligations and take further action where necessary.
‘We do issue compliance notices, or we will be able to take them to the tribunal, just to change this practice,’For shoppers, the simplest takeaway is to check the displayed price before paying and look at the final amount charged. If an unexplained card fee has been added to a purchase, it may be worth reporting it rather than simply accepting the extra cost.
National Consumer Commission Consumer Protection Act Card Payment Surcharges Point-Of-Sale South Africa Retailers Spaza Shops
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