It is paid by the seller to the bank for the POS service that he uses

Two bankers: Charging customers 2.5% when using “cards” is illegal

• Payment methods have changed and the focus has become on the card payment mechanism or smart applications.

  Emirates today

picture

Two bankers confirmed that charging the customer 2.5% of the value of payments when using bank cards, whether a credit or direct debit card, by some sales outlets, is a violation and illegal, as the seller is supposed to bear this percentage and pay it to the bank, in exchange for the POS service that he uses. According to the contracts signed with the bank.

They explained to «Emirates Today» that carrying “cash” with a large value to pay purchases such as gold is no longer common, especially after payment methods changed completely after the Corona virus pandemic, as the focus became on the card payment mechanism, or smart applications, pointing out that the behavior of these shops It exposes it to the loss of dealers who have many options in other outlets.

Customer complaints

And «Emirates Today» had received complaints and notes from dealers, due to the deduction of some sales outlets from gold shops and mobile phones, and some gyms and salons, and when booking airline tickets, amounts when using a credit card, or even direct debit in the payment process.

This percentage constitutes a large amount when buying gold and smart phones, and booking airline tickets. Therefore, the cardholder must pay attention to it and inquire about the nature of the fees he pays.

signed contracts

The banker, Muhammad Ghazi, said that according to the contracts signed by banks with sales outlets wishing to provide electronic points of sale, or known as the payment machine using bank cards, these outlets pay 2.5% to the bank in return for providing the service, and it is not legally necessary to carry it to the customer.

He added that most shops, including groceries, now accept payment for all amounts, no matter how simple they are, and do not raise the price of the commodity or impose any fees. Banking, especially if the seller’s profit is small, and he believes that bearing the percentage agreed upon with the bank is a loss, although this is an explicit violation.

He said, "Buyers tolerate small amounts, but they have to realize that this is illegal, and they must choose between the various sales outlets to buy."

Widespread phenomenon

For his part, the banker, Tamer Abu Bakr, said that this phenomenon is widespread in shops selling gold or mobile phones, and travel tickets, which is a percentage that the seller is supposed to pay to the bank, but unfortunately the shop carries it to the buyer, or reduces the price and adds the percentage, and this is illegal, pointing out It is a “percentage” that differs from the value-added tax estimated at 5%.

Abu Bakr added that carrying “cash” at a large value to pay purchases of gold or a phone is no longer common, as payment methods have changed completely after the Corona virus pandemic, and the focus has become on the card payment mechanism, or smart applications directly, and this is what the sales outlets that sell must pay attention to. Some of them do not keep pace with the current development in the market.

He believed that the behavior of these stores exposes them to the loss of customers, who have many options available to them in other and various sales outlets.

Arab lead

The UAE occupies the first position in the Gulf and the Arab world in electronic payment systems, thanks to the state's advanced technological infrastructure and legal legislation regulating payment operations. 

Follow our latest local and sports news and the latest political and economic developments via Google news