THE PRICE OF A SWIPE: Wellington Residents Taxed by “Illegal” Spaza Surcharges

The streets of Wellington, from Pentz Street throughout Weltevrede and Van Wyksvlei, are witnessing a quiet but costly rebellion against South African consumer law. Foreign-owned spaza shops have reportedly implemented a "private tax" on customers, demanding steep surcharges for those who dare to pay by card.

In Weltevrede Street, one resident, speaking on condition of anonymity, revealed a shocking reality: "At one shop here, if you pay with your card, they charge you up to R50 extra. It doesn’t matter what the price on the shelf says; the moment the machine comes out, the price goes up."

This is not an isolated incident. Reports have flooded in identifying several shops across the area allegedly engaging in this practice:

• The "Red Building" shop in Pentz Street.

• The "Red Shop" in Denne Street.

• The "Red Container" shop in Jardine Street.

• Outlets in Van Wyksvlei Way, Leon Street, and Impala Way.

• Multiple shops within the Smarty Town/Weltevrede area.

What the Law Says

The South African government is clear: this practice is illegal. According to Section 23 of the Consumer Protection Act (CPA), a supplier must not require a consumer to pay a price higher than the displayed price. Furthermore, the Payment Association of South Africa (PASA) and the Consumer Goods and Services Ombudsman (CGSO) have confirmed that merchants are contractually forbidden by their banks from passing "swipe fees" onto the customer.

National Citizen received the following statement from PASA: “Merchants are not allowed to charge extra for purchases made with a card. If the customer still has the sales slip, it should show the bank name and the merchant number that is needed for the customer to report the merchant to the correct acquiring bank.”

If a loaf of bread is R20 on the shelf, it must be R20 at the till—whether you pay with a R20 note or a bank card.

The Big Question

Why do the residents of Wellington allow this to continue? In many cases, it is a matter of convenience or lack of transport to larger retail centers. However, by continuing to support these shops without challenge, the community effectively subsidizes illegal business practices. Are people so desperate for local service that they are willing to let their consumer rights be trampled for an extra R50 a swipe?