The Banking Association partners with fuel stakeholders to broaden Card Acceptance at Fuel Forecourts

2008/04/07

Garage card and cash are currently the most widely accepted payment mechanisms for fuel in South Africa. The banking industry through The Banking Association has proactively embarked on an initiative to encourage a review of the existing fuel regulations in order to give clarity regarding the acceptance of debit and credit cards for the purchase of fuel, especially in view of the expected influx of tourists for the 2009 Confederation Cup and the 2010 Soccer World Cup. A further motivation for this initiative is the high cost of cash associated with crime to society, including the loss of lives at fuel forecourts. In this process, the industry is continuously engaging with a number of stakeholders, including the Petroleum Retailers Alignment Forum (PRAF), South African Petroleum Industry Association (SAPIA), South African Reserve Bank (SARB), National Treasury, Department of Mineral and Energy Affairs (DME) and the Card Associations (VISA and MasterCard).

It became apparent that the major stumbling block is local regulation, which appears to prohibit the sale of petrol on credit- and debit card in its current commercial format. There are already a number of pilot initiatives underway for debit card acceptance at fuel forecourts, however, the sustainability of these initiatives are dependent on further clarity on the current regulations.

In engagements with the DME, it is understood that the department is actively reviewing the current environment and that significant changes can be expected. It is hoped that once these changes have been enacted, banks would be able to make more payment mechanisms available to their local and international customers at fuel forecourts, including bank debit and credit cards.

For any further information please contact:

Cas Coovadia
The Banking Association South Africa
Telephone: (011) 645-6705