Extra fees on card purchases violate law

MUSCAT: Extra fees charged on bank card purchases are “contrary to the laws,” the Public Authority for Consumer Protection has said.

“The imposition of an additional percentage of the value of purchases or services when paying by cards is contrary to the laws of Visa or Mastercard,” the Public Authority for Consumer Protection has said.

“The commission imposed on the merchant by the bank for the use of electronic payment devices are a part of the operating expenses for the dealer and cannot be re-loaded to the card holder in any case,” it said, in a written circular issued recently. PACP said that they are taking action against merchants charging customers for bank card transactions.

“If any retailer still insists on charging, shoppers are within their rights to complain to the PACP,” an official of PACP said.

Residents claimed that a large number of retailers have been reg- ularly charging if we are paying by cards. “Are you paying by cash or card?” is the first question posed to customers at some outlets.

“Recently, an airline company told us that we have to pay 3 per cent more if we buy the tickets on card,” Sushma, an Indian expat said who wanted to buy tickets to Mumbai. Then there are some gold shops which charge more if the customers pay via card, according to the residents.

“This is a standard practice for many gold shops in Ruwi. Good that the PACP has clarified,” Suresh, an Indian expat said.

Ramachandran Nair, Quality Manager – GAC Oman, said: “This clarification helps consumers a lot, as some retailers especially in the field of jewellery levy additional charges on customers. This reminder is a kind of alert to customers who are mostly depending on credit cards for their regular shopping. Retailers usually ask the customers prior purchase that an additional charge will be added if the payment is made through credit cards.”