Card machines are costly for us-Asian businesses
Asian business owners have been identified as the main culprits of the businesses in the country that insist on receiving cash instead of using card machines.
The Eswatini Financial Times desk visited some of the shops located at the Corporate Place where some admitted to not using card machines and have no intention of doing so anytime soon.
One of the major reasons given was that using card machines is costly for their businesses in terms of the monthly payments of using it as well as the interest charges per transaction.
Even though the owners were not forthcoming with their names, they gave consent to their shop names being quoted. The first interviewee was Millenium Fashion owner who was adamant that he prefers transacting in cash than using a card machine.
His reason was that he had never been taught about this digital device and the purpose it serves to businesses. When asked whether he would consider using it in the event someone would teach him about using a card machine, he said he would not.
“I still go to the bank to deposit money made from my business, I don’t see the reason for having a card machine,” he said.
Another was the Hat owner who said he did not use a card machine because the profit margin is very low. He stated that the frustrating part was that some of the items sold by the shop ranged below E100 and when a customer insists on swiping, it is most costly to the business.
“After learning about this, I opted not to have a card machine. I barely make anything from in sales as a small business and I also want to retain the customers I have as most of them buy in cash,” he said.
Meanwhile, Splash owner, an Ethiopian found in the same corridor shared similar sentiments. He stated that even though he owns a card machine, he barely uses it and never brings it up as a first option for his customers to pay.
The business owner said back in his home country, businesses of a similar size are barely charged for any bank-related transaction.
“From deposits to withdrawals, there are no charges.
Here it is different, well now they have removed charges on deposits and are on withdrawals only. In Ethiopia there is even interest made by a business if they deposit their remittances,” he said.
The businessman lamented that the banking system is different in Eswatini and hoped that the government would consider charging small businesses similar to large ones.
He said the intention is not to dodge the system, but to ensure the profits are visible, which is why he has opted to use mobile money services which he considers are much cheaper than a card machine.
“They need to look at the margin work and consider the amount made by the business at month end and determine whether the business is within the right tax bracket and bank charges,” he said.