‘It’s for the machine’: NCC warns spaza shops over extra card fees hitting consumers

The National Consumer Commission (NCC) has issued a warning to spaza shop owners about adding hidden charges when customers pay by card, emphasizing the need to protect consumers from unexpected costs at the checkout. Reports have emerged of shoppers being charged extra amounts, ranging from R2 to R10, when using a card to purchase everyday essentials.

This practice has sparked concerns about consumer rights, especially in poorer communities where many residents depend on spaza shops for basic groceries and use bank cards for transactions.

Consumer watchdogs maintain that suppliers must adhere to the Consumer Protection Act (CPA) and ensure that consumers are fully informed about the prices they will pay. According to the Consumer Goods and Services Ombud (CGSO) and the NCC, charging consumers additional undisclosed fees for card payments is in direct violation of consumer protection principles and merchant service agreements.

The NCC stresses that suppliers must clearly disclose any additional charges to consumers and ensure pricing practices comply with the CPA, particularly where an extra charge is tied to the payment method.

While the commission acknowledges the challenges faced by small businesses, it firmly asserts that empathy cannot justify exploitation. The most detrimental aspect of these extra card fees is their disproportionate impact on the most vulnerable consumers. Section 23 of the CPA mandates that suppliers must honor the listed price of a product.

If a product label indicates a price of R10.00, consumers must pay exactly that amount. Adding an undisclosed fee at the point of sale contravenes consumers' right to transparent pricing.

The NCC is actively engaging with local business forums and spaza shop owners to raise awareness about consumer rights and promote compliance with the CPA. Additionally, the Payments Association of South Africa (PASA) has clarified that merchants are prohibited from charging extra for purchases made using a bank card. PASA, which is mandated by the South African Reserve Bank to oversee its members' activities in the National Payment System, mandates that financial institutions providing card-payment services to merchants enforce the "no surcharging" rule.