Some FNB business customers have been scratching their heads after receiving a notification from their bank, stating that they weren’t allowed to charge less for cash payments. The notice, from FNB Merchant Services, was headlined Surcharging: warning: “This notice serves as a reminder that in terms of Your Merchant Agreement engaging in the practice surcharging is strictly prohibited.
“What it really means, however, is that you aren’t allowed to give a client a discount if they pay cash! Because that may suit the merchant, who does the work, and it may suit the client, who pays the bill, but it doesn’t suit the bank, who writes the laws. “Perhaps it’s a coincidence, perhaps not. I agree it is very likely in the terms and conditions. But I think that banks would cringe in shame if the public knew that they bullied merchants into denying them a cash discount, while advertising themselves with ‘how can we help you?’ Just sickening.”
“As rightfully referenced in the merchant letter, surcharging on a card transaction is strictly forbidden and is stipulated as such in the Pasa rules. In practice this means that if a merchant advertises a product for R100, the merchant is not allowed to process a card transaction for R110.” In some countries, such as Egypt and Australia, price gouging is commonplace. Price gouging or speculation is when sellers spike the prices of goods or services. This usually happens during times of crisis - emergencies - but it’s essentially profiteering.