The Brunei Association of Banks (BAB) stated yesterday that standard agreements between businesses and card associations prohibit retailers from imposing any additional charges, such as a surcharge on top of the price of goods or services, when purchases are made using a debit or credit card.
Retailers who fail to comply with the terms stipulated in their agreement may face action by banks, said BAB.
The BAB also reminded cardholders to verify the retailer’s billing amount, before entering into any transaction.
“Cardholders also have the right not to proceed with a transaction if a surcharge is imposed. It is encouraged that cardholders exercise their rights to contact their respective banks and report on merchants that impose any surcharges,” said BAB in a press statement.
Meanwhile, in response to public grievances, Autoriti Monetari Brunei Darussalam (AMBD) in January this year said card terminals are provided by the banks for the use of credit/debit cards, which may come at a cost to businesses.
“These costs are to be borne by the tradespeople, and not transferred to consumers via surcharges. As the regulator of financial institutions in Brunei Darussalam, we will continue to work closely with the banks to ensure that the banks take necessary action on merchants that continue to practise things such as the revocation of the service of card terminals,” said AMBD in a statement.
AMBD also reminded the public of their rights to raise questions and seek resolutions from a financial institution, if they feel that that they have been treated unfairly.
“Should a member of the public encounter credit card surcharges, or any other issues relating to financial matters, they are to contact the relevant banks directly,” said AMBD.
The issue was also raised two years ago, at a Legislative Council session, when the Minister at the Prime Minister’s Office and Minister of Finance II, Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, warned business establishments not to incur additional charges to its customers on purchases made through their credit or debit cards.
He had said that additional charges should be absorbed by the retailer, instead of being passed down to the consumer. “Any surcharge payable by the dealer to the service provider shall be borne by the retailers themselves,” he had said.
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