Merchants Pass Card Fees to Consumers in North Macedonia, Despite Illegality
In North Macedonia, merchants are increasingly passing the transaction fees for card payments onto consumers, despite this practice being illegal. This trend, described as "contamination in the field," sees sellers charging customers an extra fee if they choose to pay with a card. The justification provided by merchants is that banks charge high commission rates for card transactions. Business advisor Pavle Gacov highlighted this issue, noting its prevalence even in hospitals. This practice shifts the burden of bank fees from the merchant to the buyer, circumventing the need for merchants to collectively pressure banks for lower commission rates. The situation persists despite legal prohibitions, indicating a widespread disregard for regulations concerning electronic payment fees.
The practice of merchants surcharging consumers for card payments, even when illegal, highlights a market dynamic where operational costs are being shifted to the end-user. This suggests that the existing fee structures imposed by financial institutions may be creating unsustainable cost pressures for businesses. While consumers benefit from the convenience of card payments, they are now bearing an additional, often undisclosed, cost. This situation could erode trust in digital payment systems and potentially stifle their adoption if not addressed. Future regulatory approaches might need to consider a more balanced allocation of transaction costs or explore alternative payment infrastructures that offer lower overhead for all parties involved.
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