BSP warns against extra fees

By GYNNIE KERO
THE Bank of South Pacific says customers should not be charged additional fees by EFTPoS (electronic funds transfer at point of sale) merchants whether it is for purchase, cashout or balance checking.
BSP general manager retail Paul Thornton said under the terms and conditions accepted by the bank’s merchants, they were not permitted to charge additional fees on cusatomers.
“Bank of South Pacific has over 7600 merchants across Papua New Guinea,” he said.
“If we become aware of a merchant applying a fee for transactions, we will caution them and remind them of the terms and conditions they accepted.
“If the merchant continues to apply fees, the bank will remove the terminal from the merchant and discontinue the merchant relationship.
“Being an EFTPoS merchant, the business operator obtains the benefit of having secured payment for approved transactions.
“This means that the merchant is sure that the value of the purchase made by a cardholder as well as any cash out paid with the purchase is credited to the merchant’s bank account that day.
“Merchants  can therefore reduce or remove the security risks of holding cash and reduce or remove the need to travel to a branch to make a cash deposit.
“Additionally, as public servants and most private sector businesses now pay their staff electronically.
“The availability of electronic funds transfer at point of sales can increase the volume of sales at their business as customers find electronic payments safe and convenient to do business with.
“A card holder might prefer to shop at a business that accepts cards rather than one that doesn’t.
“These benefits to the merchant offset the cost they would incur for being an EFTPoS merchant and there should not be a fee charge.”