According to a local report South Africa is to follow the example set by UK and EU authorities and investigate the phenomenon of credit card fees in its domestic market.
In reporting the moves currently afoot in Europe, the South African website Moneyweb has suggested that South African authorities are also expected to pursue the issue of credit card fees.
The EU has threatened antitrust action against the payment cards industry after an inquiry found that the current system is harming businesses and consumers in Europe. A preliminary report published by the European Commission has revealed that banks and networks put up barriers to prevent new entrants into their domestic payments sectors, while charging high transaction fees to consumers and businesses.
According to Moneyweb, such transaction fees in South Africa are double those being disputed in Europe. While the EU competitions commissioner Neelie Kroes has been criticizing European transaction fees of 2.5%, some South African providers are charging 6%, the financial website has reported.