Question
Will it be permissible to charge a customer a 1.5% extra charge on credit card transactions fee on an invoice where the final price of the invoice does not include the credit card charge.
E.g. Invoice price: R5000
Final price R5075
Answer
The customer may be charged a fee for swiping a credit card when purchasing at a store on condition that the customer is informed in advance of the fee that is applicable. This means that when a customer has chosen all his items and ready for payment then 1.5% should be calculated on the total purchase and he should be informed that this extra amount (eg. R75.00) is payable for using the credit card. It is incorrect to charge the fee without informing the customer. By informing the customer, he will at least have the option of paying in cash (thereby saving him the 1.5% surcharge) or of paying with credit card (knowing that there will be an extra 1.5% charge). Also, the fee charged by the retail outlet cannot exceed the fee charged by the banking institute for swiping the credit card.
We therefore suggest that some notification is put up at the store, whilst at the same time sales people should inform customers (when selling items) that using a credit card to pay for purchases will attract a further 1.5% fee.
With regard to not listing the credit card fee on the invoice, it is not necessary to list the fee on the invoice if the customer was informed of the exact fee amount prior to concluding his purchase, and has consented to paying the fee.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.