Reserve Bank wants to unveil South Africa-only bank card to take on Visa and Mastercard

ToxicBunny

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You do, if just that Wollies has lumped the extra couple of % into the price of what you're buying.
And everyone who uses cash pays the same fee.. So moral of the story, if you don't like a company but need to use their services, pay with a card... It reduces their profit margin.
 

BBSA

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You do, if just that Wollies has lumped the extra couple of % into the price of what you're buying.
I pay exactly the same if I pay cash or per card. Actually with the card I get some ebucks back.
 

Mystic Twilight

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Not a unique service, lots of countries have a localised and integrated payment system, notably the asian countries from malaysia all the way to japan. Everything from online payments to buying groceries and taking the subway/railway can be paid with their version of a local only [debit/prepaid] card. Big issue is governments non-existent positive reputation with money and outsourcing work, can't see this taking off without being riddled with overspending on tenders, and then the questionable availability of skills for development and maintenance. Idea is fine, execution is predicted to be horrible.
 

cr@zydude

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Not a unique service, lots of countries have a localised and integrated payment system, notably the asian countries from malaysia all the way to japan. Everything from online payments to buying groceries and taking the subway/railway can be paid with their version of a local only [debit/prepaid] card. Big issue is governments non-existent positive reputation with money and outsourcing work, can't see this taking off without being riddled with overspending on tenders, and then the questionable availability of skills for development and maintenance. Idea is fine, execution is predicted to be horrible.

To push adoption they could make Post Bank issue card with the system. Having it as the default option for social grant recipients would create a large install base and could drive merchant adoption.
 

Johand

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I don't see a problem with this either... just legalised Bitcoin transactions and problem solved.

Ha - have you seen the average transaction cost for bitcoin transactions? Hint: it is not free and higher than 99.9% of merchant fees on transactions I perform...
I guess it might make sense if fees were noticeably lower, but otherwise I don't really see the point. The VISA/Mastercard thing is gonna get irritating real quick.

Edit: Meh. Honestly can't see the fees making that much difference. I pay a fixed amount in fees each month. Can't imagine banks are gonna change that for a local card.
Credit cards have the "hidden fee" that the merchant must pay. Sure some of the banks give a portion of that back to you in the form of rewards but make no mistake you are still paying it. There has a reason a place like Wootware gives a discount for EFT payments and why "instant EFT" is being pushed by some vendors.

With a national card you can bring down transaction cost and ultimately prices. If course banks won't like this and reward schemes will have to rethink (the billions in eBucks dished out come from somewhere). A proper local card can replace EFT and don't have to stick to Visa and Mastercard rules and remove/reduce the hidden tax that is merchant fees.

And with technology there is no reason to carry multiple cards around... Hell it might be practical for the national card system to be completely digital only from day one.
 

Swa

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Does Mastercard not have Maestro for exactly this purpose? An electronic transaction card that's switched locally by your bank.
 

ToxicBunny

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Ha - have you seen the average transaction cost for bitcoin transactions? Hint: it is not free and higher than 99.9% of merchant fees on transactions I perform...

Credit cards have the "hidden fee" that the merchant must pay. Sure some of the banks give a portion of that back to you in the form of rewards but make no mistake you are still paying it. There has a reason a place like Wootware gives a discount for EFT payments and why "instant EFT" is being pushed by some vendors.

With a national card you can bring down transaction cost and ultimately prices. If course banks won't like this and reward schemes will have to rethink (the billions in eBucks dished out come from somewhere). A proper local card can replace EFT and don't have to stick to Visa and Mastercard rules and remove/reduce the hidden tax that is merchant fees.

And with technology there is no reason to carry multiple cards around... Hell it might be practical for the national card system to be completely digital only from day one.
Just had a look at wootware, and I think the way they do their cash discount is actually straight up illegal. You may not add a surcharge to an advertised price for a card transaction in this country.
 

ab-user

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I don't think that they have quite thought it through. It costs serious money to emulate VISA or Mastercard, just in systems and security, it's in the billions of dollars per annum.
If it didn't, and doing so offered such a huge commercial advantage, then the local banks would have done it a long time ago.

This government doesn't even have the ability to meet its own deadlines for simple tasks like the digital migration of analogue spectrum.

“Our government” do dream big, but they fail spectacularly massively and expensively
 

grok

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No thx, I'd rather support an international company than cross subsidize locals and their non-payment of essentials, 'cos this is who it is aimed at.
 

Swa

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Just had a look at wootware, and I think the way they do their cash discount is actually straight up illegal. You may not add a surcharge to an advertised price for a card transaction in this country.
Yes Wootware's practices have long put me off as well. Also false advertising knowing it's not the real price.
 

Adenoid Hynkel

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Just had a look at wootware, and I think the way they do their cash discount is actually straight up illegal. You may not add a surcharge to an advertised price for a card transaction in this country.
It's not illegal. It however goes against domestic card clearing rules, which are set by Pasa. Report them.
 

Adenoid Hynkel

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Just looked at woodwares site.

Please note: pricing visible is already subject to a 3% discount applicable only to cash / EFT payments.

They offering a discount on eft/cash payments and not a surcharge for card payments. Basically same thing, but within the rules to do so. They must however display the price that reflects the "surcharge" and can give a discount once during the checkout process if eft/cash is selected.
 

ToxicBunny

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Just looked at woodwares site.



They offering a discount on eft/cash payments and not a surcharge for card payments. Basically same thing, but within the rules to do so. They must however display the price that reflects the "surcharge" and can give a discount once during the checkout process if eft/cash is selected.

It's not the same thing. They display a price and add 3% if you choose card as your payment method, that looks and smells like a surcharge to me no matter how they spin it.


It's against the rules... So yeah illegal is too strong a word, but it's against their merchant rules and the Pasa rules.
 

Mike Hoxbig

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I don't think that they have quite thought it through. It costs serious money to emulate VISA or Mastercard, just in systems and security, it's in the billions of dollars per annum.
If it didn't, and doing so offered such a huge commercial advantage, then the local banks would have done it a long time ago.

This government doesn't even have the ability to meet its own deadlines for simple tasks like the digital migration of analogue spectrum.



Not a unique service, lots of countries have a localised and integrated payment system, notably the asian countries from malaysia all the way to japan. Everything from online payments to buying groceries and taking the subway/railway can be paid with their version of a local only [debit/prepaid] card. Big issue is governments non-existent positive reputation with money and outsourcing work, can't see this taking off without being riddled with overspending on tenders, and then the questionable availability of skills for development and maintenance. Idea is fine, execution is predicted to be horrible.

Except SARB is not government, they're independent. Can you imagine if the government was responsible for our monetary policy?

Our banking system, as much as everyone complains, is right up there. There's no reason to doubt a SARB proposal. It might fail for market related reasons, but not because they're government...
 

RonSwanson

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Except SARB is not government, they're independent. Can you imagine if the government was responsible for our monetary policy?

Our banking system, as much as everyone complains, is right up there. There's no reason to doubt a SARB proposal. It might fail for market related reasons, but not because they're government...
Not for long.
 

Adenoid Hynkel

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It's not the same thing. They display a price and add 3% if you choose card as your payment method, that looks and smells like a surcharge to me no matter how they spin it.


It's against the rules... So yeah illegal is too strong a word, but it's against their merchant rules and the Pasa rules.
Yes as per my second reply. They need to display the full price including the 3% and are only allowed to offer the discount during checkout.

Also wootware is a busy store. hardly doubt their transaction fees are 3%, so they probably even banking part of it.
 
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