Is It Legal to Charge a Credit Card Fee in South Africa

An attachment order is usually obtained by a creditor from a district court if the court has sufficient evidence that the borrower is unable to meet its repayment obligations in relation to a credit agreement or HP agreement for the goods purchased. Deductions are usually obtained through payroll deduction. I think the pass-through of fees is more common in Africa, and perhaps because the cardholder gets more out of the deal than the B&B, so they (or us) pay. Concerns about a surcharge not covered by the prohibition may be reported. Report: This feature offered by some merchants at the time of purchase is called dynamic currency conversion. Under normal circumstances, each transaction is processed in the local currency, then converted by Visa or MasterCard to US dollars (USD) when it reaches their network, to be converted back to SA Rands (ZAR) by your card-issuing bank before appearing on your bank statement. Visa/MasterCard and your issuing bank charge a currency conversion fee, so the price of the purchased item sometimes seems higher than the best published conversion rates. In addition, there is a risk of currency fluctuations between the date of purchase and the date the trader submits it to his acquiring bank for clearing (which then passes through the global network as described). However, the currency could become stronger or weaker during this period – to your advantage or disadvantage. The average cost of accepting a business for Visa Direct Debits is 1% and for Visa Credits is 1.5%. Banking Ombudsman Clive Pillay said banks charge retailers three to five per cent fees for card facility, but are not allowed to pass the cost on to consumers. “All merchant agreements in South Africa state unequivocally that a merchant is prohibited from adding fees or additional fees and if they have done so, it could be a breach of the agreement and the bank could take over the [credit card] machine,” Pillay said. According to the National Credit Regulations (NCR), the reprorata rate directly affects the interest rate that banks charge us for loans.

This means that our interest rates may rise if the repo rate increases. Some professional ETF clients scratched their heads after receiving a notification from their bank that they could not charge less for cash payments. Image: Siphiwe Sibeko/Reuters Read on to find out what fees banks charge us just because we have a credit card. You can also report overpayment surcharges to ACCC. I have booked twice with Wild Wings Safari and they have no extra charge. It saved me a lot of money! Volker advised consumers to report the practice. “If the merchant refuses to move, he can inform him that he will report it to his card-issuing bank. If the merchant still does not move, he must contact his card issuing bank and report to the merchant the details of the incident as well as the name of the acquiring bank, which is usually indicated by the brand on the card reader terminal. If a company wants to set the same surcharge for all payment methods, it must not be higher than the lowest surcharge it would set for a single payment method. You cannot give the card to a money lender if you have made a loan for money from a money lender; Klaus – thank you for taking the time and effort and calling. Interesting! However, if I pointed out to all potential hosts that this supplement is illegal, I probably wouldn`t make sure I had the best experience with them!!!! 😉 A refund transaction occurs when the cardholder contacts the merchant from whom the goods or services were purchased and, for any reason (return of goods, non-delivery of incorrect goods, goods or services, etc.), asks the merchant to refund or refund the full initial amount.

If the merchant agrees, the result is a “credit” transaction from the acquiring bank to the issuing bank, which then reimburses the full amount to the cardholder. Early last year, Standard Bank began charging a “card fee” to anyone with a standalone credit card that isn`t offered as part of an account with a set of transactions for a flat fee. Retailers can decline card payments, but if they accept card payments, they are not allowed to raise the price to cover their fees. “This is the normal price on the door. I think I have every right to offer a discount. I don`t charge higher fees because you pay with a credit card. If she`s too big to understand, that`s not my problem,” he said. “You can twist words to your liking,” Von Moos said when I suggested that the “discount” was the same as a supplement. Then he added: ” Of course, it`s the same thing. Some banks allow the cardholder to set their own daily or transaction limits at a level higher than the standard limit.

It may also be that the bank combines the cash limit with the total limit for purchasing goods/services and even cash withdrawals from ATMs. This is called a portfolio limit. Credit tracking involves monitoring an ADE-compliant account (checking account or savings account) by the bank for credits entering that account and, therefore, an EDO (i.e. AEDO or NAEDO) for credit tracking. This usually comes into effect after the original payment order has not been successful on the contractually agreed due date (due to late payment of wages, holidays, system problems, etc.).