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29 March 2024

Credit card surcharges illegal: Economy ministry

Some traders charge customers additional fees on top of bank fees in their purchasing transactions. (SUPPLIED)

Published
By Staff

The Ministry of Economy has warned dealers against overcharging credit card holders, saying any additional fee is a violation of the law.

In a circular published on Sunday, the Ministry said it had received complaints from credit card holders that some traders are making them pay additional fees on top of bank fees in their purchasing transactions.

It said extra fees have ranged between 2.5 and five per cent paid by card holders to dealers along with fees paid to the bank in any purchasing transaction.

“Any commission or extra fee charged by the dealer on top of the original price of the product in a purchase by credit cards is illegal,” the Ministry said.

The circular said there is a need for a stronger coordination between the Ministry and local economy departments to control such practices and “create more awareness among consumers".

“Consumers are called upon to file a complaint to the consumer protection section at the Ministry in case they are subject to such extra fees,” it said.