Swipe machines now mandatory in Zimbabwe

The Consumer Protection Commission has launched an enforcement blitz against businesses refusing to accept Point-of-Sale (POS) machine transactions, making it mandatory for all businesses to comply with electronic payment systems. This move is aimed at protecting consumers and promoting safer, more convenient payment methods.

POS machines significantly reduce the risk of robberies by eliminating the need for consumers to carry large amounts of cash for purchases. Additionally, they provide consumers the flexibility to make payments using cards linked to both Zimbabwean dollars (ZiG) and US dollar accounts, allowing them to choose their preferred currency at the point of purchase.

In a statement released yesterday, the commission expressed concern over the growing number of businesses operating without POS machines, which it said was a clear violation of the country's laws and an infringement on consumers' rights.

"To protect consumers from unfair business practices, the Consumer Protection Commission is carrying out an enforcement blitz, starting with the fuel retail industry where several service stations have been found wanting and issued with compliance notices in line with Section 68 of the Consumer Protection Act," the commission said.

The commission revealed that out of 27 service stations inspected, 80% lacked POS machines, highlighting the widespread non-compliance. The blitz will now extend to all sectors to ensure full adherence to the law.

Under the Consumer Protection Act, businesses are prohibited from engaging in unfair trade practices, including denying consumers the right to choose how they pay for goods and services. The commission reminded businesses of the legal obligations under the Finance Act Number One of 2018, which requires all businesses to have devices that facilitate electronic payments, including POS machines and mobile payment platforms.

The commission urged the public to report businesses that do not offer the option of swiping for goods and services, providing hotline numbers for assistance.

Confederation of Zimbabwe Retailers (CZR) president Mr. Denford Mutashu backed the initiative, urging businesses, both formal and informal, to comply with statutory regulations. "CZR implores all shops to comply with regulatory and statutory obligations, including the installation of POS machines for the convenience of the public," said Mr. Mutashu.

He further emphasized that the multi-currency policy is the law, and both Zimbabwean dollars and US dollars are legal tender. "It is illegal to deny a consumer access to swipe or pay via mobile platforms in local currency," he added.

The blitz is seen as a crucial step toward modernizing payment systems in Zimbabwe, ensuring consumer protection and convenience. Businesses found to be non-compliant will face penalties in accordance with the law.