Credit Card Surcharges in South Africa

[Hank2211]

I assume many if not all SCI members received an “SCI News” email yesterday.

There was one item in the email which I thought was interesting, from a number of perspectives.

A member told SCI he tried to pay for a hunt in South Africa with a credit card and his outfitter told him there was a 10% surcharge ‘required’ for credit cards. The member was asking SCI if this was correct.

The answer seems to clearly be no, SCI says that not only are there no ‘required’ surcharges for credit card use in South Africa, but that a surcharge is actually not permitted. As someone who has used a credit card from time to time in South Africa, I can attest to the fact that I’ve never been asked to pay any sort of surcharge.

So far, nice to know.

But more interestingly, at least from my perspective, is who was this outfitter who tried to rip off his client, and why did this outfitter think (i) the client wouldn’t check and find out that he was being cheated, and (ii) the client wouldn’t tell everyone he knew that the outfitter attempted to, or did in fact, cheat him.

That would ruin even the most successful hunt for me, and I would advertise that outfitter’s name far and wide. Apparently, SCI has decided not to let us know who the outfitter is . . . So wondering if anyone knows?

 

[Hunt anything]

I’ve always seen 3%, be it the hunt or taxidermy. I use a Capital One cabelas card. Before leaving a couple of weeks ago I looked up to see if I needed to notify them of some upcoming overseas purchases. The website said no but when I tried to pay the balance off of my hunt it was declined due to suspicious activity overseas. A quick call and email and it was cleared.
10% is way out of line.

 

[GuttormG]

Someone is playing for the cost of the credit, typically the seller and 2-3%.IE-if you pay by credit card the seller do not receive the full amount.
I am ok with this cost bering charged to me, if this was a part of the agreed arrangement.
But 10%is way over any acceptable fee.

 

[Green Chile]

10% on CC fees is unacceptable. In that case, they can choose the fee or a tip but not both.

 

[Rem280]

Ask your outfitter upfront about payment and fees.

 

[375Fox]

I’m surprised this made the SCI News. This seems more like a warning on selecting a professional outfitter and discussing payment before hunt than an announcement on 10% credit card charge. I could make a lot of assumptions on the type of outfitter they hunted with and their planning.

 

[TheGrayRider]

Average “haircut” for retail credit card vendors is probably 3% (Vendor eventually receives about 97 cents on the dollar.)

The vendors attempt to claw back this loss with additional fees to the credit card holder. I have seen 5 % surcharges from some vendors here in the States but 10% surcharge seems unreasonable anywhere.

Good luck and happy hunting to all, TheGrayRider a/k/a Tom.

 

[Hogpatrol]

Paid three with a card and was never asked for a fee. 10% is over the top. Agree, the outfitter should be disclosed.

 

[Tbitty]

I've seen 3% fairly common in South Africa, which makes sense sense to me because that is more or less what the vendor gets charged by Credit Card Company for the transaction. I'm happy to pay that 3% if asked, especially when clearly noted in payment terms.

10% is grossly overcharging the customer, and if I saw those terms I would quickly find another outfitter to go with.

On my hunt earlier this year, I was aware in advance of the 3% charge, so I wired most of my payment ahead of time and brought enough cash to cover my balance, tips, and a few expected extras. However, when it came time to settle, I chose to use card for part of the payment anyway and even asked outfitter who charged them the least for the transaction (Visa was the best for him) and paid with that card.

 

[LimbNoMo]

Maybe that’s their way of saying, “Bring cash.”

 

[JimP]

You will see businesses here in the US start to charge 3% on CC charges to regroup what they are paying the CC companies. I know that all the business that I do with state and county offices they will charge that 3%.

But businesses can charge what they want to charge as far as percentages on CC charges, it is up to you the consumer to decided if you want to pay that extra percentage or not. But doing business with a outfitter who wants a wire transfer could be the better way to go. I know that there are members on here that say to carry cash to pay for the hunt but not me. I'll let the outfitter hold my trophies hostage until I can either send them a wire transfer or cross my fingers that they only charge the standard 3% for the CC fee.

 

[Adipose]

Many of the outfitters I talk to that allow a credit card for the balance say upfront if that is what is used for the final balance there will be a 3% addl charge. I have never seen higher than that but Im sure there is. The rate someone is charge has a lot to do with the credit score of the vendor, how many chargebacks they have on their account, average ticket amount etc.

It is getting harder to travel with big amounts of cash, and even worse to try and re-enter with it if it is not used. Although here in the states it is against the terms of service for accepting credit cards for a vendor to charge an addl fee to use a credit card, nobody ever says anything and many vendors do. I do not know what the terms are in Africa for accepting credit cards.

 

[Letzhunt]

Another potential issue that is likely coming is the removal of South Africa from the SWIFT wire transfer system. That will make it even more difficult to pay. I just saw a pod cast but can find it at the moment regarding SA being removed from the system. Anyone else seen or heard of this coming?

 

[Mark Biggerstaff]

I personally prefer and like when an outfitter has a USA Bank account and can just take a picture of check and send them. Or uses an invoice system with a link so you can pay with PayPal, Debit Card or bank transfer. No fees were added to that. I have paid from here and over there like that with iPhone. I used credit cards pay Riflepermits and Hotel stays with no added fees while there. Usually take enough cash cover tips and miscellaneous items.

 

[Hank2211]

I think the issue isn’t that the outfitter was looking for a surcharge on the credit card - as many have pointed out, this has become quite common, although the amount here is, again as most say, over the top.

I think the issue was that the outfitter said that the surcharge was required by law - and the hunter certainly took it that way. If the outfitter had been upfront, my complaint, at least, would have been different.

It might also be useful to note for Americans that in Canada, until very recently (2022), merchants were prohibited by their merchant agreements with the credit card issuers from offering discounts for cash or adding a surcharge to cover the credit card fee. That used to be the situation many years ago in the US as well, I believe, until the credit card issuers were forced to change.

 

[Troubleshooter]

Maybe that’s their way of saying, “Bring cash.”

More likely it was their way of saying, "Not interested in repeat customers." Particularly if not disclosed in advance.

 

[JimP]

More likely it was their way of saying, "Not interested in repeat customers." Particularly if not disclosed in advance.

Or that they didn't want to deal with credit cards

 

[MarkB]

Last hunt in 2023 CC had an added 3% if used for payment, was on contract so no surprise. E-transfer was wanted and that's what I did, easily set up before I left Canada, no big fees and outfitter excepted Canadian funds so no bank exchange rip off. At home here in Canada its something to be aware of, rules changed and businesses can now charge/pass on the CC fees they inure, most do not but there are some that do. Buyer beware.

I did just make a trip to the US (research manikins, as drive, 3 day fun and pickup was far cheaper than shipping and crazy UPS fees) my CC charged me $1 plus exchange for each transaction, that's a first for me. More BS in 2025.

MB

 

[Sabre]

One of the last things said in the SCI letter seems interesting. Because they seem to be saying that no outfitter is allowed to charge a surcharge for using a credit card vs other forms of payment and would have to word it as you receive a "cash discount" in paying cash.

I feel like I have seen many outfitters that state they have a 3% surcharge for using credit card. I don't really fault them for that as long as they offer an alternative method of payment without a charge as well.

It's interesting how in the US there was very rarely anyone that charged the 3% credit card surcharge, but now it's almost more common to be charged that fee than not.

 

[Letzhunt]

I did a little more research on the report of SA being withdrawn from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) payment system. It is unlikely that as a whole all Businesses and Banks in South Africa would be eliminated from SWIFT. A more likely scenario would be that certain named organizations and businesses would be withdrawn. The hunting outfitters are not likely being considered. I hope this holds true as I like to pre-pay a bit for Safari so I don't have to carry as much cash while there.