SKIMMING CARD DEVICES
Criminals are able to copy information illegally from the magnetic strip (black strip) on the back of the bank cards, and use this information to steal money.
The device used to copy the information is called a skimming device.
Skimming devices can either be handheld or mounted onto an ATM.
TRANSACTION LIMITS AND
SURCHARGING ON DEBIT &
CREDIT CARD PAYMENTS
BY MERCHANTS
1. INTRODUCTION AND BACKGROUND
The Payments Association of Namibia (PAN) is empowered by the Payment System Management Act, 2003 (Act No.18 of 2003), as amended, section (3) (1) to manage the National Payment System (NPS). With this comes the responsibility to ensure compliance within the NPS to local and international card operating rules and regulations.
PAN has learned that some merchants are adding a surcharge (additional fee) to card transactions or are setting minimum or maximum transaction amount as a condition for accepting debit or credit cards for payment. Such practices have a negative impact on consumers and are in direct violations of VISA International Operating Regulations (ID#: 111011-010410-0006948 and ID#: 111011-210710-0026405) and MasterCard Rule 5.11.3.
TRANSACTION LIMITS AND SURCHARGING
ON DEBIT AND CREDIT CARD PAYMENTS
2. ACQUIRERS AND MERCHANTS
Acquirers and Merchants must comply with all card operating rules and regulations to protect the integrity of the payments systems.
Merchants are reminded that they are required to:
• Treat all debit and credit card payments like any other method of payment without additional costs (surcharges) added to the value.
• Honour valid debit and credit cards in their acceptance category regardless of the dollar amount of the purchase.
Acquiring banks are reminded to ensure:
• Merchants do not differentiate methods of payments by imposing a surcharge fee on any card payments.
• Merchants do not impose a minimum or maximum purchase amount for the acceptance of card transactions.
3. PAN’S POSITION
Carrying around large amounts of cash poses a risk to the individual. With a debit or credit card, you can pay for goods and services in a safe and secure manner. Cards also offer a fast and convenient way to shop. Penalizing consumers for use of payment cards is not only in contravention of card operating rules, but it unfairly shifts the cost of electronic payments onto the consumer.
4. COMPLAINTS AND PENALTIES
The public is encouraged to report any non-compliance with this notice to PAN. If PAN becomes aware of a merchant’s non-compliance with any operating rules and regulations, PAN may notify the acquirer of such non-compliance and the acquirer must promptly ensure the merchant discontinues the non-compliance practice immediately.
Failure to comply with this notice, PAN may pursue any remedial measure(s) as provided under Section (16A) (1) of Payment System Management Act, 2003 (Act No.18 of 2003), as amended, or the relevant card operating rules and regulations.