PNG Businesses Warned Against Illegal EFTPOS Cash-back Fees

The Independent Consumer and Competition Commission (ICCC) has issued a stern warning to businesses across Papua New Guinea over the unlawful practice of charging fees for Electronic Funds Transfer at Point of Sale (EFTPOS) cash-back transactions.

 

 PNG Businesses Warned Against Illegal EFTPOS Cash-back Fees

The move comes after a number of complaints from members of the public, prompting preliminary investigations by the watchdog. Findings revealed that some retail outlets are adding extra charges for customers accessing their own money through EFTPOS services.

ICCC Commissioner and Chief Executive Officer Roy Daggy said the practice violates existing merchant agreements between banks and businesses.

“Increasingly, we are seeing customers being unfairly charged when they access their own money through EFTPOS machines. This practice is not allowed,” Daggy said in a public notice.

Daggy added that the illegal charges are happening in both urban centres and rural areas, and warned that enforcement action will be taken against any business found to be non-compliant.

The commission has also engaged Bank South Pacific and Kina Bank to ensure merchants strictly follow EFTPOS agreements. Additionally, the ICCC is working with the Central Bank to put in place regulatory measures to safeguard consumers from unfair trading practices.

Members of the public are urged to report any businesses continuing to charge EFTPOS cash-back fees so that the ICCC can take appropriate action.