Uganda Bankers Affiliation (UBA) has launched the ‘No Merchant Surcharge’ Marketing campaign dubbed “Pay with your Card @ No Extra Cost”.
The marketing campaign goals to lift consciousness of the Card cost system. The marketing campaign goals at eliminating the observe of retailers levying further charges for digital funds made utilizing Level of Sale (POS) machines.
In keeping with UBA Govt Director Wilbrod Owor, in August final 12 months, Bank of Uganda issued a directive that prohibits service provider surcharging at Factors Of Sale terminal and the fixing of minimal/most transaction quantities on digital cost playing cards. This was in a bid to drive the expansion and uptake of Digital Monetary Providers.
By way of this marketing campaign, UBA will educate customers on the No Surcharge Rule the place cardholders shouldn’t be compelled to pay extra charges for utilizing their cost playing cards of selection as an alternative of cash at a degree of sale.
“The consumer, therefore, should enjoy the benefit of no extra fee charged from the Bank’s partners or merchants such as stores, supermarkets, hotels, restaurants, bars and fuel stations,” stated Owor.
Banks have over the previous months sensitized their retailers, encouraging each present companies to drive up volumes of funds achieved by card and in addition encourage new companies to undertake the digital cost system.
“Merchants will enjoy service with reduced risk of counterfeit notes, loss of monies by theft or otherwise, as well as carrying loads of money from or to the bank,” he added.
Salma Ingabire, Visa’s Nation Supervisor for Uganda, defined that surcharging has an antagonistic affect on digital funds progress and in the end on monetary inclusion.
“We consider that customers must be free to decide on their most well-liked type of cost and people who resolve to pay with cost playing cards shouldn’t be penalized.
“Visa’s no surcharging safety was created particularly to protect customers from retailers who search to impose surcharge charges and penalize customers who select Visa over different types of cost.
“Surcharging unfairly shifts the price of doing enterprise onto customers. We are going to proceed to work with our monetary establishment companions like UBA and retailers to make sure the observe of card surcharging isn’t permitted on all card transactions,” stated Ingabire.
Frank Molla, Director, Nation Enterprise Improvement, East Africa Development Markets, Mastercard famous the observe of making use of surcharge charges frustrates the efforts of economic establishments and card scheme suppliers in facilitating handy cost and entry to companies.
“The expansion of digital expertise has offered individuals with entry to progressive, inexpensive options that assist them meet their monetary wants, in the end resulting in monetary inclusion and elevated prosperity.
“By giving clients the pliability to pay for items and companies through their bank card on phrases that work for them, we’re driving security and comfort. At Mastercard, we purpose to make sure we not solely present entry however that collectively we additionally make sure the utilization of our monetary instruments to help Ugandans to transact seamlessly and affordably.”
The marketing campaign which is able to run for six months, initially beginning within the Central area for three months. It’s anticipated to go a good distance in growing consciousness on the advantages of card utilization and guarantee Ugandans transact at no further value whereas utilizing digital cost programs.