The ‘minimum R20’ to swipe trap is bullying your wallet: Here’s how to fight back

2026-03-17 - 12:20

There is no greater betrayal than the laminated “Minimum R20 for Card” sign taped to a shop counter. The sign mocks your lone bag of R12 corn chips. Defeated, you toss a handful of Fizzers onto the counter just to make the difference. But here’s the kicker: while you’re increasing your budget, the shop is breaking the law. Card minimums are actually illegal. Protected by law South African consumers are being bullied by a sign that shouldn’t even be there. Director of the Centre for Banking Law at the University of Johannesburg ,Philip Stoop, told The Citizen that according to section 23 of the Consumer Protection Act, the price displayed is the final amount payable and any additional “card swipe fee” is unlawful. More importantly, most Bank Merchant Agreements (BMA) (with the likes of Nedbank, FNB, and Standard Bank) strictly prohibit retailers from imposing minimum or maximum transaction amounts. By forcing you to “top up” your purchase, they are effectively penalising you for using your card; a practice the banking industry and the law flatly reject. It is not the consumer’s responsibility to directly fund a business’s choice of technology. ALSO READ: Inside the most expensive city to buy groceries in SA What to do Legal practitioner, Mumsy Maphakela, told us that the best bet is to first complete the transaction. “When a cashier asks for an extra fee, simply state that surcharging is a breach of their bank’s agreement. “It is best to avoid a heated exchange with the cashier, as they are often just following orders and are not responsible for the store’s policy. “Instead, complete the transaction and take a clear picture of the card machine slip as evidence. “Look for the bank’s branding on the card machine and email that specific bank to report the violation,” she added. “If the bank fails to provide a satisfactory response within a reasonable time, you should then escalate the matter to the Consumer Goods and Services Ombudsman (CGSO).” ALSO READ: Absa sounds warning on energy prices, rand, as profits climb to record Business’s ‘why’ The Citizen called multiple head offices of stores that impose this rule, and the majority response for why they do this is the avoidance of bank charges on their card machines. The small amounts charged on the machines are expensive, they complained. Stores like Xpresso require buyers to purchase 3 items when using a bank card. “These minimums are an unscrupulous workaround used by owners to avoid paying bank fees on low-value items like a loaf of bread,” “Because this limits a customer’s freedom to pay how they choose, a bank is able to confiscate the card machine if the business is reported for refusing small transactions,” explained Maphakela. ALSO READ: Fraud complaints at the banking ombud nearly double in a year as digital scams surge Maphakela said that the Merchant Service Agreement acts as a legally binding promise to the bank that businesses will treat every card payment exactly like cash. “This ‘no-surcharge’ mandate is a non-negotiable requirement handed down by the Payment Association of South Africa (PASA) to ensure that customers are never penalised for how they choose to pay, ” she explained. She said that business owners who sign this contract agree to absorb the bank’s transaction commission as a standard operating cost rather than passing it directly to the buyer at the till. “If a merchant ignores these rules, they risk the bank terminating their facility entirely, effectively blacklisting the business from accepting digital payments in the future.” Maphakela said that while seen often in spaza shops or independent retailers, they are likely banking on the ignorance of the masses rather than a lack of legal knowledge, especially given that the merchant agreements they sign with banks explicitly forbid the practice. Whose fault is it? “In my view, banks share some responsibility for this lack of awareness, as they have not done enough to actively educate customers about the issue. “From the responses I have received on my TikTok account, it is clear that many people are willing to exercise their rights once they are properly informed and guided on how to do so.” “Even if someone can comfortably afford to pay an additional R5 when swiping their card, it should not be accepted when the charge is illegal. ” NOW READ: How 12-hour days, bucket toilets and R27.58 are breaking female farm workers