National Consumer Commission warns spaza shops against hidden card charges

The National Consumer Commission (NCC) has cautioned spaza shop owners against the practice of charging customers concealed fees when they pay with a card. This warning follows complaints from shoppers who have been charged extra amounts, ranging from R2 to R10, for everyday purchases. The issue has sparked concerns about consumer rights, especially in impoverished neighborhoods where many residents depend on spaza shops for basic groceries and use bank cards for payment.

According to the NCC, suppliers must comply with the Consumer Protection Act (CPA) and ensure transparency regarding prices. The CPA mandates that suppliers display the exact price of products and honor it at the point of sale. Charging additional undisclosed fees for card payments is deemed a violation of consumer protection principles and merchant service agreements.

The NCC emphasizes that consumers should be fully informed about the total cost of a purchase before proceeding with the transaction, particularly when card payments are involved.

The watchdog argues that while empathy for small businesses is understandable, it should not justify exploitation. The most significant impact of extra card fees is felt by the most vulnerable consumers. Under Section 23 of the CPA, suppliers are obligated to display the exact price of items. Any additional charges at the point of payment infringe upon consumers' rights to transparent pricing.

Concerns are heightened in communities where consumers have limited access to large supermarkets and rely heavily on spaza shops for basic necessities. The NCC is actively engaging with local business forums and spaza shop owners to raise awareness of consumer rights and promote adherence to the CPA. The Payments Association of South Africa (PASA) has also clarified that merchants are prohibited from charging extra for purchases made with a bank card.

PASA, overseen by the South African Reserve Bank, enforces the "no surcharging" rule for financial institutions providing card-payment services to merchants.