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The Consumer Protection Commission (CPC) has embarked on an enforcement campaign to crack down on businesses that refuse to accept Point-of-Sale (POS) transactions, making it mandatory for all businesses to allow swipe machine payments.
The move is designed to protect consumers and ensure compliance with the country’s financial regulations.
POS machines have become an essential part of modern commerce, allowing customers to make secure, cashless payments with their debit or credit cards. They provide a significant benefit in terms of safety, reducing the need for people to carry large amounts of cash and minimizing the risk of robbery.
Furthermore, they offer a convenience factor for consumers who prefer to pay electronically, either in local currency (ZiG) or US dollars, depending on their preference. In a statement released yesterday, the CPC expressed concern over the number of businesses, particularly in the fuel sector, that are operating without POS machines.
The commission pointed out that this practice is a clear violation of the Consumer Protection Act, which safeguards consumers’ rights, including their right to choose their preferred method of payment. The commission emphasized that rejecting POS payments amounts to unfair business practices under Section 51 (h) of the Consumer Protection Act.
The blitz is being initiated to ensure that businesses across all sectors comply with this legal requirement, with penalties to be imposed on those found violating the regulations. “The enforcement blitz commenced with the fuel retail industry where several service stations were found operating without POS machines. Out of 27 stations inspected, 80 percent were not compliant,” the commission revealed in its statement.
Fuel stations and other businesses that fail to comply have been issued with compliance notices in line with Section 68 of the Consumer Protection Act, which governs enforcement actions. The CPC plans to extend its inspections to cover all sectors of the economy, ensuring that every business adheres to the rules.
The commission also cited the Finance Act Number One of 2018, which amended the Bank Use Promotion and Suppression of Money Laundering Act. This legislation requires all businesses to have devices that facilitate electronic payments for goods and services.
In addition, the Act mandates businesses to allow payments using mobile phones or computers. The CPC is calling on members of the public to assist in this effort by reporting any businesses that fail to provide the option to pay via swipe machines. Hotlines have been established for consumers to lodge complaints, enabling the commission to take swift action against non-compliant businesses.
In response to the crackdown, Denford Mutashu, President of the Confederation of Zimbabwe Retailers (CZR), urged businesses to comply with the law. He emphasized the importance of POS machines in today’s multi-currency environment, where both the ZiG and the US dollar are recognized as legal tender. “CZR implores all shops, formal or informal, to comply with regulatory and statutory obligations guiding their operations, such as the installation of working POS machines for the convenience of the transacting public,” said Mr. Mutashu.
He further noted the need for banks to expedite the issuance of POS machines, particularly in remote areas, to ensure that all businesses can meet the demand for electronic payments. “It is illegal to deny a consumer access to swipe or pay via mobile platforms in local currency,” Mr. Mutashu stressed.
The commission’s action comes amid growing consumer frustration with businesses that insist on cash-only transactions, despite the government’s push for a cashless economy.
By enforcing the use of POS machines, the CPC aims to protect consumers from the inconvenience and potential safety risks associated with carrying cash, while ensuring that businesses operate within the framework of the law.
