The Payments Association of Namibia (PAN) has warned that the continued practice by some businesses of imposing minimum spend requirements for debit and credit card payments is illegal and violates national payment regulations.
PAN said it has observed cases where merchants either restrict card usage based on transaction values or add surcharges to card payments, practices it said undermine the integrity of Namibia’s National Payment System.
The association said such conduct is in direct contravention of Visa International Operating Regulations and Mastercard rules.
“PAN has learned that some merchants are adding a surcharge to card transactions or are setting minimum or maximum transaction amounts as a condition for accepting debit or credit cards for payment,” the association said.
“Such practices have a negative impact on consumers and are in direct violations of Visa International Operating Regulations and Mastercard Rule 5.11.3.”
PAN reminded merchants that all valid debit and credit cards must be accepted without discrimination and treated in the same manner as any other payment method. No additional costs may be passed on to consumers, and card payments must be honoured regardless of the transaction value.
The association said acquiring banks have been instructed to ensure that merchants under their supervision comply fully with card operating rules. This includes preventing the application of surcharges or the enforcement of minimum or maximum purchase amounts for card transactions.
According to PAN, penalising consumers for using cards unfairly shifts the cost of electronic payments onto the public and discourages the use of safe and convenient cashless payment methods.
“Carrying around large amounts of cash poses a risk to the individual. With a debit or credit card, consumers can pay for goods and services in a safe and secure manner,” PAN said, adding that card payments also offer a faster and more convenient way to shop.
Members of the public have been encouraged to report non-compliant merchants to PAN.
Where violations are confirmed, the association may notify the relevant acquiring bank, which is required to ensure that the merchant immediately discontinues the practice. Persistent non-compliance could result in remedial action under the Payment System Management Act of 2023 or sanctions in line with card operating rules.
The warning follows earlier statements by the Bank of Namibia (BoN), which has cautioned merchants against enforcing card swiping limits and stressed the responsibility of the banking industry to prevent minimum or maximum purchase restrictions on card transactions.
