Consumers voice outrage over card payment surcharges at spaza shops

Spaza shops across the country are under scrutiny following a growing number of consumer complaints about unauthorised surcharges added to purchases made using bank cards.

The Consumer Goods and Services Ombudsman (CGSO) has confirmed that it is unlawful for spaza shop owners to charge customers extra for choosing card payments over cash.

CGSO Ombud Lee Soobrathi said the practice contravenes Section 23 of the Consumer Protection Act, which governs fair pricing.

“If I’m a customer buying a service or product, it must be clearly priced and I must pay that price,” Soobrathi said.

“If a product is labelled R10 and I opt to pay by card, the shop cannot charge me R12 just because I’m not using cash. That’s not allowed.”

The CGSO further noted that complaints have emerged from residents in Soweto, Gauteng, who claim they are being charged excessive card fees at local shops.

“There are guidelines, particularly from the Payment Association of South Africa, that clarify this. A supplier is not allowed to apply a surcharge for card use,” said Soobrathi.

Consumers across the country have expressed frustration, saying the practice is not only widespread but also exploitative, particularly of the elderly and vulnerable.

Zoleka Mpunge, from Cape Town, said she was charged R10 by a spaza shop for withdrawing R50 in cash.

“It’s daylight robbery. Our elders who can’t travel to town are forced to pay extra just to access their money,” she said.

Hope Banda, a resident of Capricorn, echoed this sentiment: “They even charge extra for airtime if you use your card. But when we go to shops run by South Africans, there are no additional fees.”

In Braamfischerville, Gauteng, Ipeleng Mofokeng said she stopped paying by card after being charged extra. “I was shocked. I told them I wasn’t withdrawing cash, just buying something, but they still charged me,” she said.

In Bonteheuwel, Cape Town, Ward Councillor Angus McKenzie said he had received several complaints and engaged with the Somali Business Association (SBA) to get clarity.

“I called a meeting with the SBA and asked about the legalities. They admitted to the charges and explained that the fees are due to the payment apps they use. They are charged R2.50 per transaction, which they pass on to customers,” McKenzie said.

“It’s not that they’re pocketing the fee, but the important thing is that we’ve started a conversation.”

SBA chairperson Nuur Allie confirmed that spaza shops charge an additional R2.50 to R5 when customers use cards to buy electricity or airtime.

“There’s no charge for cash purchases. But after we met with the councillor, we agreed to stop charging for electricity and airtime when paid by card,” he said.

However, he added that withdrawal charges will continue.

“For amounts below R100, there’s a R2.50 fee, and R5 for amounts over R100,” Allie said.

The CGSO has encouraged consumers to report shops that continue charging unlawful surcharges.

Complaints can be lodged through the CGSO website or by contacting the ombud’s office directly, or by contacting the National Consumer Commission (NCC).

mandilakhe.tshwete@inl.co.za