Despite South Africa’s growing shift toward cashless payments, many shoppers are encountering an unexpected hurdle when trying to pay with a bank card. Some small shops charge extra fees or require customers to spend a minimum amount before allowing card payments.
Across trading areas in Johannesburg, including inner-city street shops like Marabastad and township spaza stores, some traders require customers to spend at least R50 before paying by card. Others add a small fee to card transactions, while many consumers view the practice as unfair.
Small business owners say the cost of processing card payments and tight profit margins are forcing them to make difficult decisions.
The issue highlights growing tension between the push toward digital payments and the financial pressures facing South Africa’s micro and small enterprises.
What the law states
Under the Consumer Protection Act, businesses may not charge consumers more than the price displayed on goods.
“A supplier is not allowed to charge a surcharge simply because a customer wants to use a card,” said Consumer Goods and Services Ombud Lee Soobrathi.
Legal specialists refer to Section 23 of the Act. This section states that the price displayed to the consumer must be the price that is charged. Adding an unexpected fee at the till could therefore be considered misleading or unfair conduct.
Banks prohibit surcharges
The banking sector also discourages merchants from charging customers additional fees for card payments.
According to the Payment Association of South Africa, merchants are not allowed to charge extra for purchases made with a card.
Bank representatives say transaction fees should be treated as normal business operating costs. Merchant agreements with banks also prohibit retailers from imposing minimum card payment amounts.
Why small businesses still do it
Despite these rules, the practice remains common among small traders who say they struggle to absorb the cost of card transactions.
Many micro retailers operate on very small profit margins, selling low value items such as snacks, airtime, electricity and basic groceries.
A store owner in Marabastad said card transactions on small purchases can quickly reduce profits.
“When someone buys something for R10 and pays with a card, the bank still takes a fee,” the trader said. “If it happens many times a day, you lose money.”
To manage these costs, some traders introduce minimum spending requirements or small card fees. This is particularly common in informal retail environments where every rand matters.
Another spaza shop operator in Johannesburg said the minimum card amount helps protect already thin margins.
“Most customers buy small things like chips or sweets,” the owner said. “If everyone pays R10 or R15 using a card, the bank charges add up.”
Customers caught in the middle
For many consumers, the practice creates frustration. Fewer people carry cash today.
A shopper in Johannesburg’s inner city said she was recently unable to buy items because the shop refused a small card payment.
“I wanted to buy bread and a drink, but the shop told me the minimum for cards is R50” said Takalani Rambani. “I had no choice but to top up other items so I reach the price.”
Consumer advocates say such experiences undermine efforts to expand digital payments and financial inclusion.
The SME challenge
South Africa’s small, medium and micro enterprises face rising operating costs. These include higher supplier prices, electricity costs and rent. Accepting card payments can help businesses attract more customers, however, it also introduces additional costs for small retailers.
Industry analysts say the situation reflects a broader challenge for micro businesses. They must balance the convenience of digital payments with the financial realities of running small shops.
“Lower transaction costs, better financial education and alternative payment technologies could help reduce the burden on micro traders,” said Mike Anderson, chief executive of the National Small Business Chamber.
As South Africa continues to move toward digital payments, regulators, banks and businesses will need to ensure that payment systems remain fair to consumers. At the same time, they must support small enterprises.
“The debate over card fees in small shops highlights the complex realities of running a micro business in a changing financial environment,” Anderson said.
