BUSINESSES who set minimum amounts for transactions that customers can swipe with their credit and debit cards are violating the rules and should stop doing so, says the Bankers Association of Namibia (BAN).
In a press statement released yesterday, spokesperson of the association Elzita Beukes said they have been made aware that some merchants add a surcharge (additional fee) to card transactions, or set minimum or maximum amounts on transactions as conditions for accepting debit or credit card payments.
“Such practices have a negative impact on consumers, and are in direct violation of Visa international operating regulations and MasterCard. Acquirers and merchants must comply with all card operating rules and regulations to protect the integrity of the payment systems,” she stressed.
Beukes said businesses should treat all debit and credit card payments like any other method of payment without surcharges to the value, as well as honour valid debit and credit cards in their acceptance category, regardless of the amount of the purchase.
The banks, on the other hand, are also cautioned to ensure that “merchants do not differentiate methods of payments by imposing a surcharge on any card payments as well, and they should not impose a minimum or maximum purchase amount for the acceptance of card transactions”.
“Carrying around large amounts of cash poses a risk to the individual. With a debit or credit card, you can pay for goods and services in a safe and secure manner. Cards also offer a fast and convenient way to shop. Penalising consumers for using payment cards is not only in contravention of card operating rules, but also unfairly shifts the cost of electronic payments onto the consumer,” added Sarel van Zyl, chairperson of the association, in the release.
The public is thus encouraged to report any non-compliance with this notice to the Payments Association of Namibia (PAN).
“If PAN becomes aware of a merchant’s non-compliance with any operating rules and regulations, PAN may notify the acquirer of such non-compliance, and the acquirer must promptly ensure the merchant discontinues the non-compliance practice immediately,” Beukes noted.
Email: lazarus@namibian.com.naTwitter: @Lasarus_A
