Swipe fee scam: Not worth the chase

Tuesday, 29 July 2025 03:59 - - {{hitsCtrl.values.hits}}

It was recently reported that, according to Vasantha Alwis, Director of Payments and Settlements at the Central Bank of Sri Lanka (CBSL), companies have no legal right to impose additional charges—typically ranging from 2.5% to 3%—on customers for transactions made using credit or debit cards.

Alwis stated that if such fees are charged, customers should immediately report the matter to the bank that issued the card. He emphasised the importance of obtaining a receipt clearly showing the surcharge, which would enable the bank to initiate a recovery process.

However, in practical terms, this recovery may not be worth the time and cost involved. For instance, if the total bill is Rs. 1,000, the surcharge would only be Rs. 25 to Rs. 30 maximum. The effort involved in lodging a complaint and following up with the bank could exceed the value of the surcharge itself.

To address this issue more efficiently, I propose that banks issue a flyer or poster stating that no additional fees are legally chargeable for card transactions. Displaying this prominently at merchant locations would empower customers to refuse any unauthorised surcharge at the point of purchase—eliminating the need for bank intervention altogether.

Mohamed Zahran,

Colombo