By: Nghiinomenwa-vali Hangala
In a statement released last week, the Payment Association of Namibia (PAN) issued a warning to merchants charging additional fees on card transactions as conditions for debit and credit cards, saying it would take the necessary actions as guided by the Payment System Management Act, 2003, if those caught do not rectify their actions.
According to PAN, it has learned that some merchants are adding a surcharge (additional fee) to card transactions or are setting a minimum or maximum transaction amount 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,” the statement read.
PAN has called on merchants to treat all debit and credit card payments like any other method of payment without additional costs to the listed value.
According to PAN, 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,” PAN stated.
The Association added that penalising consumers for use of payment cards is not only in contravention of card operating rules, but it unfairly shifts the cost of electronic payments onto the consumer.
With that, the public is encouraged to report any non-compliance with this notice to 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,” the Association stated.
Should a merchant fail to comply with the notice, PAN stated they would pursue any remedial measure(s) as provided under Section (16A) (1) of the Payment System Management Act, 2003 (Act No.18 of 2003), as amended, or the relevant card operating rules and regulations.
The National Payment System comprises modern infrastructure to transfer money between customers, suppliers, merchants, banking institutions, and countries, including the use of payment instruments, such as cards, cheques, and EFT payments.
erastus@thevillager.com.na
