Know your rights: retailers cannot legally charge extra for bank card payments

Consumers in South Africa are being warned that it is illegal for retailers, whether large supermarkets or small spaza shops, to charge extra fees for debit or credit card payments or to sell expired or unsafe goods.

This warning comes from Fortune Chego, a candidate attorney specialising in consumer law at Trudie Broekmann Attorneys, and the Consumers Goods and Services Ombudsman (CGSO). Both stress that South African law is clear on the issue.

Chego explained that all transactions between consumers and retailers are governed by the Consumer Protection Act (CPA), 68 of 2008, which requires that the displayed price of goods is the full amount payable. 

“Section 23 of the CPA provides that suppliers must not require consumers to pay a price higher than the one displayed for goods or services,” the attorney said. “Where a retailer only discloses at the till that an additional charge will apply because the customer is paying by card, that surcharge does not form part of the displayed price and therefore contravenes Section 23 of the CPA.”

The CGSO confirmed this, noting that merchants may not add any extra fees for using a debit or credit card. 

“The major card schemes and the Payment Association of South Africa (PASA) enforce a ‘no surcharge’ rule for card transactions in South Africa. Merchants are not allowed to add a penalty fee on top of the displayed price when a customer chooses to pay by card,” the Ombudsman said. Enforcement is overseen by PASA, which is recognised by the South African Reserve Bank (SARB) as the payment system management body.

Chego and the CGSO also emphasised that selling expired or unsafe products is unlawful. “In terms of Section 55 of the CPA, consumers have the right to receive safe, good-quality goods that are reasonably suitable for their intended purpose and will be usable and durable for a reasonable period,” the attorney said. “If the goods are unsafe, defective, expired, or not of good quality, consumers are entitled to return them and demand either a refund or a replacement in terms of Section 56.”

The CGSO added that expired or defective products pose serious health risks. The National Consumer Commission (NCC) can order mandatory recalls, and retailers may be held liable for any injury, illness, or death caused by unsafe products under Section 61 of the CPA.

The warning comes amid growing complaints in communities across the Western Cape. In Villiersdorp Ward 5 Councillor Michelle Botes, recently told residents that a local spaza shop had been fined R1 500 for charging customers extra when they used their bank cards. 

Botes said she learnt that consumers were charged between R5 to R10 extra for “card usage” and added that the price would increase, the more you spent.

Botes said she has been contacted by hundreds of people reporting similar problems, including additional fees for electricity or airtime and the sale of expired or spoiled goods.

To address the issue, Botes engaged the municipal Law Enforcement Unit to conduct joint inspections. “Our intention is not to target or embarrass any business owner, but to ensure that all traders operate fairly and within the law,” Botes said. 

“Many of our residents are from low-income households and cannot afford to be over-charged or sold unsafe products. The purpose of this enforcement is to safeguard the dignity and well-being of our community while maintaining a level playing field for all law-abiding businesses.”

Consumers are advised to be vigilant and informed of their rights. If they are charged extra for using a card, they should report the merchant and acquiring bank to their issuing bank or to PASA. If they encounter expired or unsafe products, they should first lodge a complaint with the supplier. If the issue is not resolved, they can contact the CGSO or the National Consumer Commission (NCC), which can investigate, order recalls, and impose fines on non-compliant retailers.

tracy-lynn.ruiters@inl.co.za

Weekend Argus