Have you ever wondered why petrol stations don't move with the times and allow motorists to add a tip for petrol attendants through debit or credit cards. Restaurants have been doing it for a while, so what could be so difficult?
CEO at Fuel Retailers Association of South Africa, Reggie Sibiya explains why this would not be a good move.
It is better for motorist to pay tips in cash because credit cards are administered at a loss for fuel retailers, he explains.
The fact is, since 2009 when cards were introduced as payments for fuel, retailers have been under-recovering on their fuel costs. Every litter sold on a credit card makes a loss....— Reggie Sibiya, CEO at Fuel Retailers Association of South Africa
When a customer pays a tip in cash it goes straight to the recipient without a third party. Immediately you put it in a card, it triggers additional costs and it certainly triggers administration costs.— Reggie Sibiya, CEO at Fuel Retailers Association of South Africa
We want motorists to understand that we don't want them to stop paying tips and that paying tips through cards it would come at a cost to fuel retailers and it actually benefits the banks.— Reggie Sibiya, CEO at Fuel Retailers Association of South Africa
Sibiya encourages motorists to use the ATMs at the service station to make a withdrawal and pay for tips in cash if needs be.
To hear the rest of the conversation with Reggie Sibiya, listen below:
This article first appeared on CapeTalk : Why you can't tip petrol attendants with a card