On 12 April
2010, the Bank of Namibia announced that “..As
part the Namibian payment system reform initiative of which the implementation
of the local card switch, NAMSWITCH, has been one of the milestones, the
Namibian banking industry resolved to discontinue petrol cards in Namibia in
the near future. The public will instead be allowed to purchase fuel with
internationally accepted debit and credit cards. The Payment Association of
Namibia (PAN) wishes to inform the public that they can use their debit and
credit cards to purchase fuel at Filling Stations.
These developments are good steps in the right
direction for consumers, for fuel retailers, and for the country as a whole.
The use of broader range of payment instruments at Fuel Stations provide
consumers with choices of which payment instrument to use and as such eliminate
cash based transactions in favour of a more convenient, secure and
cost-effective method of payment. “
At the time
the announcement was made, it was understood by consumer groups to be a good
thing as it would widen the choices of payment methods by consumers. For once
it seemed that the banking industry was thinking of the consumer first.
Two years down
the line and the Bank of Namibia informed the public that “..that fuel cards (Garage and Petro) will no longer be accepted as a legal tender after 28 February
2014. After this date clients will be
able to purchase fuel with cash, debit or credit cards. Clients should note
that fuel stations are not obliged to accept debit or credit cards for
purchases.”
It was that
last sentence that had some of the consumer groups contact the Association of
Service Station Owners (ASSO). After all, why would a fuel station refuse to
get paid for fuel?
The ASSO
then pointed out that when using a debit or a credit card, one and a half
percent goes to the bank, which it takes from the 77 cents profit. Further, service
stations may not charge a client any surcharge fee for a point-of-sale
transaction for fuel with a credit or debit card. In fact, banks have asked its
clients to contact them should a service station charge an additional fee for
the transaction.
Since the
28th of February 2014, many fuel stations are turning away all
customers that want to use cards to purchase fuel. This has led to many
consumer now having to carry the cash around in their pockets for this vital
product needed in our daily lives.
So what
must be done? The Bank of Namibia and the Payments Association of Namibia (PAN)
assured the public in April 2010 that “…these
developments are good steps in the right direction for consumers, for fuel
retailers, and for the country as a whole.”
This is not
the case! Consumers and fuel retailers are being inconvenienced, and these
measures also increase the profits of the bankers. They – the bankers - have
changed the terms and conditions of how we pay and increased their profit
margin while pretending that this is to our benefit.
It is clear
that the Namibia Competition Commission (NCC) must become involved in this
debate. Consumer groups welcome the fact that the NCC is “highly concerned”
that the decision has indeed led to constraining consumers in their method of
choice to settle an applicable transaction.
