Petrol stations and their customers are reminded that the central bank’s banning of petrol cards takes effect on February 28.
The phasing out of petrol cards as legal tender for fuel purchases, spare parts and repairs was ordered by the Bank of Namibia (BoN) early last year, as part of its payment system reform and efforts to eliminate cash-based transactions.
In its place, the central bank has ordered financial institutions to accept debit and credit card payments as more secure options, in addition to cash payments.
Merchants with existing point-of-sale devices have already begun accepting card payments for fuel, while the BoN has called on those aspiring to accept debit and credit cards to approach their banks to negotiate for and acquire such devices. Merchants are also warned that they are to be held responsible for the full interchange costs involved with card transactions, “until such time as the new system, currently being developed is fully implemented”.
Fuel retailers who choose to accept cards are required to clearly display a notice indicating acceptance of such cards for the purpose of fuel purchases.
Commercial banks have also started to introduce fleet management cards to corporate clients with a specific need to manage fuel expenses separately.
“A credit card is quite versatile in the sense that it is a universal card recognised and used internationally. It can be used anywhere in the world,” Standard Bank Namibia’s Manager for Unsecured Lending, Credit Card Issuing and Market Development, Deborah Henckert, said this week in a statement detailing the petrol card phase-out process.
The phasing out of petrol cards as legal tender for fuel purchases, spare parts and repairs was ordered by the Bank of Namibia (BoN) early last year, as part of its payment system reform and efforts to eliminate cash-based transactions.
In its place, the central bank has ordered financial institutions to accept debit and credit card payments as more secure options, in addition to cash payments.
Merchants with existing point-of-sale devices have already begun accepting card payments for fuel, while the BoN has called on those aspiring to accept debit and credit cards to approach their banks to negotiate for and acquire such devices. Merchants are also warned that they are to be held responsible for the full interchange costs involved with card transactions, “until such time as the new system, currently being developed is fully implemented”.
Fuel retailers who choose to accept cards are required to clearly display a notice indicating acceptance of such cards for the purpose of fuel purchases.
Commercial banks have also started to introduce fleet management cards to corporate clients with a specific need to manage fuel expenses separately.
“A credit card is quite versatile in the sense that it is a universal card recognised and used internationally. It can be used anywhere in the world,” Standard Bank Namibia’s Manager for Unsecured Lending, Credit Card Issuing and Market Development, Deborah Henckert, said this week in a statement detailing the petrol card phase-out process.
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