National Consumer Commission warns spaza shops against hidden card charges

The National Consumer Commission (NCC) has warned spaza shop owners against adding undisclosed charges.

The National Consumer Commission (NCC) has issued a stern warning to spaza shop owners regarding the practice of imposing undisclosed charges on customers who pay by card.

This caution comes in response to reports from shoppers who have encountered unexpected fees of R2, R5, or even R10 when purchasing everyday essentials.

The practice has raised concerns about consumer rights, particularly in poorer communities where many residents rely on spaza shops for basic groceries and use bank cards to make payments.

The consumer watchdog said suppliers must comply with the Consumer Protection Act (CPA) and ensure that consumers are given clear information about the prices they will pay.

"From a strictly legal standpoint, the argument is open and shut. The Consumer Goods and Services Ombud (CGSO) and the National Consumer Commission (NCC) have indicated that charging consumers additional undisclosed fees for card payments contravenes consumer protection principles and merchant service agreements," the NCC said.

The watchdog added that suppliers must ensure that any additional charges are properly disclosed to consumers and that pricing practices comply with the Consumer Protection Act.

It said consumers should know the full cost of a purchase before completing the transaction, particularly where an additional charge is linked to the method of payment .

"While we can empathise with the struggles of small businesses, we cannot allow empathy to validate exploitation. The worst part about the extra card fee is that it hurts the poorest people the most.

"Under Section 23 of the Consumer Protection Act (CPA), suppliers are strictly bound to honour the displayed price of a product. If a shelf sticker says an item is R10.00, that is exactly what the consumer must pay. Adding an undisclosed fee at the point of payment infringes consumers’ rights to transparent pricing."

The NCC said the issue is particularly concerning in communities where consumers may have limited access to larger supermarkets and rely on spaza shops for basic goods.

The commission also said it is engaging with local business forums and spaza shop owners to improve awareness of consumer rights and promote compliance with the CPA.

The Payments Association of South Africa (PASA) has also clarified that merchants are not allowed to charge customers extra for purchases made using a bank card.

PASA, which is mandated by the South African Reserve Bank to regulate its members' participation in the National Payment System, said its rules require financial institutions that provide card-payment services to merchants to enforce the "no surcharging" rule.