Standard Bank has assured its customers that it will not implement transaction charges on credit card purchases.
This follows a discussion between Personal Finance and Gareth Ackerman, the non-executive deputy chairman of Pick 'n Pay Stores, who was "incensed" that banks were now charging a transaction fee to credit card holders when retailers were already paying between three and six percent on the value of each credit card transaction.
In Standard Bank's 2002 pricing guide, it appears that the fee listed under credit card purchases is R2.20.
Ackerman believes stores should offer cash discounts to buyers to discourage the use of cards and help customers bring down the cost of their purchases.
Standard Bank's card division has also been receiving calls about the new fee from concerned account holders.
Craig Bond, a director at Standard Bank Card Division, says the R2.20 fee listed in the pricing guide is not a fee for credit card transactions but rather the existing transaction fee for debit card transactions and it is not a new fee. There are no transaction fees on credit card purchases and the bank has no plans to implement such a fee.
The misunderstanding, he says, stems from a poor layout of the pricing schedule. The only fee on credit card transactions is the 20 cent government levy.
The difference between a debit and a credit card, is that with a credit card you can buy goods and services without having to pay for them immediately. You get up to 55 days free credit and you only have to settle the purchases once they appear on your statement. If you do not pay your credit card in full before the due date, you are charged interest.
Any purchases on a debit card are charged to your account immediately and you cannot use the card as payment if you do not have money in your account.
A debit card can be linked to a cheque or a savings account.