How township residents are being overcharged by tuckshop owners

By Ronnie Mathobela

In a township where every rand counts, a quiet form of exploitation has taken root behind the counters of local tuckshops. Residents say they are being bled dry by illegal card surcharges and inflated transaction fees every time they swipe for bread, electricity, or airtime.

For years, these small stores, many run by Somali, Ethiopian, and Pakistani nationals, have been the backbone of township convenience shopping. But now, a growing number of South Africans are crying foul, alleging that what started as service to the community has turned into systematic overcharging and financial abuse.

A resident from Bodibe village, Itumeleng Kolwane, said the residents are losing hope.

“When you buy airtime for R10, they charge you R12. If you swipe for groceries, they add R5 or R10 to your total. It doesn’t sound like much, until you realise we’re all being robbed, every day,” he said.

Many residents confirmed the same pattern. When they pay with debit cards, particularly SASSA or Capitec cards, store owners often impose a “machine fee” or “bank charge.”

But according to South African Reserve Bank regulations and the National Credit Act, such extra fees are illegal unless disclosed as a registered service charge, which most of these spaza outlets are not licensed to levy.

“They say the card machine takes a percentage, but that’s nonsense, the bank already deducts that from the merchant, not the customer. It’s just theft,” said Mmase Matlhaba, a R350 grant recipient.

In some cases, shop owners reportedly tell customers that “system costs” or “network charges” require a top-up. But municipal officials confirm these surcharges are not sanctioned.

 While frustration is mounting, some community members say they still rely on these foreign-run stores because of convenience and affordability on basic goods. Others, however, feel trapped.

 “They open early, they give us credit, they stock everything. But when you realise they are taking R2 here and R5 there, it’s like paying tax just to survive,” admits Kgomotso Moagi.

 Local South African shop owners accuse their foreign counterparts of “breaking rules and undercutting” without consequence.

 “We register our businesses, we pay tax, we follow the law. But these guys add hidden charges and nobody checks them,” said Sam Tshweneyagae, who runs a small mini-market in Magogoe village.

Several foreign shop owners interviewed deny wrongdoing, saying they are forced to charge extra due to high banking costs and unreliable payment systems.

Shop owner, Thoman Tegesmunn said residents “don’t understand” how small business margins work.

“The banks take money from us when people swipe. We can’t lose profit every time. We are not stealing. We are just surviving too,” he said.

Financial experts estimate that if even 1,000 spaza shops in the North W