Shops cannot set swipe minimums

… customers can even swipe N$1

Shops are not allowed to set a minimum amount that customers must spend before being permitted to pay by card.

In a statement issued over the weekend the Payment Association of Namibia (PAN) says customers can swipe for as little as N$1 and setting a minimum amount is illegal.

PAN says there are also some shops charging extra fees for card transactions, preferring cash payments.

“PAN has learned that some merchants are adding a surcharge (additional fee) to card transactions or are setting minimum or maximum transaction amounts as a condition for accepting debit or credit cards for payment. Such practices have a negative impact on consumers and are in direct violation of Visa international operating regulations,” says PAN.

The association says all debit and credit card payments should be treated like all other methods of payment without additional costs added to the value.

“Honour valid debit and credit cards in their acceptance category regardless of the dollar amount of the purchase,” says PAN, noting that adding extra charges when clients make card payments discourages customers from adapting to digital payments and forces them to carry around cash.

PAN says carrying around large amounts of cash poses a risk to the individual.

“Penalising consumers for the use of card payments is not only in contravention of card operating rules, but it unfairly shifts the cost of electronic payments onto the consumer,” says PAN.

The public is encouraged to report any non-compliance to PAN.

Persistent non-compliance could result in remedial action under the Payment System Management Act of 2023 or sanctions in line with card operating rules

The association says acquiring banks have been instructed to ensure that merchants under their supervision comply fully with card operating rules.

This includes preventing the application of surcharges or the enforcement of minimum or maximum purchase amounts for card transactions.

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