South African consumers are being urged to closely check their transaction receipts after a surge in retail outlets illegally adding extra fees to everyday card purchases.
National Consumer Commission (NCC) spokesperson Phetho Ntaba warned that charging checkout fees for using point-of-sale (POS) terminals violates Section 23(6) of the Consumer Protection Act (CPA).
Under South African law, merchants cannot charge consumers a price higher than the displayed tag. POS processing fees must be absorbed by retailers as standard operating overhead rather than passed to buyers.
The regulatory warning comes amid growing complaints against independent merchants and spaza shops imposing unauthorized surcharges between R2 and R10 on essential items, prepaid electricity, and airtime.
The practice disproportionately hits low-income consumers who have turned to card payments for convenience and personal safety amid lingering risks associated with carrying physical cash in informal settlements.
While some small traders claim transaction fees eat into narrow profit margins, the NCC clarified that card processing resembles transport expenses and cannot justify illegal checkout add-ons.
The watchdog also cited Section 26 of the CPA, reminding retailers that failing to display itemized pricing on or adjacent to products before checkout remains a strictly punishable offense.
Affected shoppers can submit formal reports via the NCC’s online portal or social channels. Non-compliant businesses face compliance notices and potential prosecution before the National Consumer Tribunal.
