Some residents in Soweto are raising concerns over what they describe as financial exploitation by local spaza shops, accusing them of imposing excessive card transaction fees on purchases and cash withdrawals.
Allegations of Unfair Charges
Residents claim that spaza shops charge up to R10 per transaction when customers use card payments or withdraw money. These additional fees have sparked outrage, particularly among low-income earners and social grant beneficiaries who rely on these small retailers for daily essentials.
A community activist highlighted the financial strain this places on residents. “If someone withdraws R100, the shop takes R10, leaving them with only R90. For unemployed youth and pensioners, this is a significant loss,” he said.
Undercover Investigation Confirms Fees
An undercover was conducted at several spaza shops to verify the claims. In one instance, a reporter purchasing a R10 bottle of water was charged an additional R2 when paying by card. At another shop, a R20 loaf of bread incurred an extra R2 fee.
When questioned, shop owners could not provide a clear justification for the charges, only stating that “it’s the company’s policy.” However, they did not specify which company or regulation authorized the fees.
Residents Demand Government Intervention
Frustrated residents are now calling on authorities to intervene, arguing that registered retailers absorb card transaction costs rather than passing them on to customers. Some fear that unregulated spaza shops may be taking advantage of vulnerable community members who lack access to formal banking services.
Regulatory Action Expected
It was reported that they will be engaging with financial regulators to determine whether these fees violate payment system laws. Authorities may also clarify whether spaza shops are permitted to impose such charges and what penalties could apply if they are found to be acting unlawfully.
The issue has ignited a broader debate about financial fairness in informal retail spaces, with activists urging greater consumer awareness and stricter oversight to protect low-income shoppers.
