Card-Payment Surcharges in South Africa: Can Shops Pass the Swipe-Fee on to You?
- The Guy
- Jun 22
- 2 min read
Card-Payment Surcharges in South Africa: Can Shops Pass the Swipe-Fee on to You?
Short answer: No – unless the extra fee was clearly priced up-front. Retailers that tack a few rand onto the bill after you decide to pay by card risk breaching both their bank contracts and the Consumer Protection Act (CPA).
Here’s the fine print – and what you can do about it.
Where the law draws the line
Section 23 of the CPA requires the price displayed for goods or services to be the full amount the consumer will pay. A supplier “must not require a consumer to pay a price… higher than the displayed price”.
If a merchant only reveals a “card fee” at the till, that surcharge was never part of the displayed price, which means it’s unlawful.
Card-scheme and banking rules double-lock the door
Visa and Mastercard’s global rules prohibit merchants from adding a surcharge that wasn’t incorporated in the shelf price. Locally, the Payment Association of South Africa (PASA) reminds merchants that their acquiring-bank contracts mirror this “no-surcharging” clause, and encourages consumers to report offenders to their own (issuing) banks,
Put simply: even if a retailer wanted to surcharge, their bank agreement (and the card networks) say they can’t.
Recent spotlight: spaza-shop complaints
A spike in stories from Soweto to the Western Cape – some shops adding R2–R5 “machine fees” per swipe – prompted the Consumer Goods & Services Ombud (CGSO) to go on air in May 2025:
“It is unlawful for spaza owners to charge extra when you choose to pay by card.” – Lee Soobrathi, CGSO Ombud
CGSO urged shoppers to lodge complaints with the National Consumer Commission (NCC) or the Ombud itself if surcharges persist.
Cash discounts are fine – it’s all about framing
The rules don’t stop a shop from advertising “R100 – or R97 if you pay cash.” A discount for cash is permissible because both prices are displayed in advance, letting you decide upfront. The problem arises only when the card premium appears after the sticker price.
What consumers can do
Query politely at the till. Often staff remove the fee once it’s challenged.
Keep the receipt (or photo of signage) showing the surcharge.
Report the merchant at one of the following:
Card-issuing bank’s disputes line (quote date, amount, outlet name)
CGSO: [info@cgso.org.za](mailto:info@cgso.org.za) / 0860 000 272.
Pay the sticker price only if the extra fee was not disclosed beforehand, then escalate the matter with proof.
Tips for small merchants
Baked-in pricing: factor the 1 %–3 % merchant service fee into sticker prices.
Display dual prices if you wish to incentivise cash/EFT.
Negotiate rates: shop around for lower-fee point-of-sale providers instead of passing costs to customers.
Bottom line
South African law, card-scheme rules and bank contracts converge on a simple principle: the price on the shelf must be the price on the till-slip, regardless of whether the customer taps, swipes or flashes cash. If that doesn’t happen, consumers have clear channels to challenge the charge – and merchants could find themselves on the wrong side of both regulators and their own banks.
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