Consumer Rights Under Siege: Swipe Machines Now a Mandate Across Zimbabwe

The requirement for businesses to accept Point-of-Sale (POS) transactions has become a crucial consumer protection measure in Zimbabwe. While many businesses have embraced this shift, several are resisting, prompting government intervention. In an era where electronic transactions are becoming the norm, some companies, particularly smaller informal enterprises, remain reluctant to adopt POS systems, forcing consumers into the limitations of cash-only dealings.

Zimbabwean consumers today expect the convenience of being able to swipe or use mobile money for transactions. This expectation stems from the evolution of the economy, which now operates in a dual currency system, accepting both ZiG (Zimbabwean dollar) and US dollars.

For consumers, it’s not merely a matter of convenience; it’s about financial security. Without POS machines, customers are exposed to the risks of carrying cash, including theft or loss.

A statement from the Consumer Protection Commission (CPC) reveals that non-compliance by businesses regarding POS machine usage is no longer tolerated. The CPC has embarked on an enforcement drive, starting with the fuel retail industry. The results so far are concerning.

In an audit of 27 service stations, a staggering 80% were found to be without POS machines, a clear violation of national law. The Finance Act of 2018 makes it mandatory for businesses to have the infrastructure to support electronic payments, yet this requirement is being ignored, much to the detriment of consumers.

By enforcing POS machine usage, authorities aim to protect consumers from unethical practices while fostering transparency in business transactions. Consumers deserve the choice of how to pay for goods and services, and denying them this right infringes on their financial freedoms.

The multi-currency system enshrined in Zimbabwean law ensures that both ZiG and US dollars hold equal legitimacy in transactions. Yet, without the requisite tools to facilitate this, businesses risk alienating customers and attracting penalties.

Denford Mutashu, President of the Confederation of Zimbabwe Retailers (CZR), underscored the importance of compliance among both formal and informal traders. He called for businesses to follow regulatory standards, which include installing working POS machines.

For the convenience of the transacting public, businesses need to be aligned with the country’s legal framework. The refusal to offer swipe or mobile payment options, especially in local currency, is not just an inconvenience—it’s illegal.

The issue also highlights broader concerns around the slow pace of technological adoption in parts of Zimbabwe’s economy. While banks are tasked with distributing POS machines, supply has not kept up with demand, further complicating the situation. Mutashu has urged banks to expedite the distribution of these machines to ensure that businesses comply with the law and provide consumers with the payment options they need.

The CPC’s crackdown is more than just a legal matter—it reflects a growing frustration among consumers who expect businesses to evolve alongside the economy. By failing to offer electronic payment methods, companies not only violate the law but also risk alienating customers who prefer the flexibility and security of cashless transactions.

For many Zimbabweans, the absence of swipe machines means dealing with the hassle of finding cash. In a country where cash shortages have been a persistent problem, this creates an additional burden on consumers. Even worse, businesses that do not provide POS machines push consumers to the black market, where cash comes at a premium.

The commission is determined to rectify these issues. Penalties for non-compliance will be enforced, and businesses that continue to ignore these regulations may face severe consequences. For the public, reporting non-compliant businesses could help the CPC bring the necessary reforms and protect consumer rights.

The nationwide enforcement of POS machines will bring more than convenience—it will provide a much-needed step toward a fully functional, transparent economy. For consumers, it’s about choice. For businesses, it’s about compliance. As Zimbabwe continues to navigate its dual-currency system, the mandatory use of POS machines is a small but significant piece of the puzzle.

The Zim Bulletin