South Africa has a sophisticated banking sector with a competitive credit card market. For this reason,it pays to shop around and carefully compare the credit cards available before choosing the credit product that's right for you.
Credit card providers
Credit cards are of little use if merchants won't accept them. Happily, almost all retailers who accept credit cards in South Africa, and indeed around the world, will accept
MasterCard and
Visa branded cards. For this reason, the card brand is less of a concern than the credit card terms and benefits set by the issuing bank.
American Express cards are also widely accepted in South Africa. Many cardholders value American Express credit cards for their first-rate rewards and famous customer service.
Credit card security
New credit cards issued in South Africa are enabled with
Chip and PIN technology, for enhanced security. Chip and PIN employs cutting edge smart card technology to make credit cards virtually impossible to replicate. The new cards have a microchip embedded in them containing the information previously held in the magnetic stripe on the underside of the card.
Transactions are performed as normal, with the additional requirement that you confirm the purchase by entering your secret PIN.
This ensures that your card cannot be used when it is stolen and helps to prevent credit card fraud.
Not all merchants in South Africa have the facilities to process Chip and PIN yet - so you will sometimes still be required to authorise your credit card transaction by signing. Eventually, Chip and PIN will replace the old technology entirely.
South African National Credit Act
The
South African National Credit Act is a piece of credit legislation designed to protect consumers from irresponsible lending. By making the requirement for credit more stringent, the NCA aims to ensure you only qualify for credit you might reasonably be able to repay. The Act also makes the credit application process more transparent. Misleading adverts are not permitted and lenders are not allowed to disguise the terms of credit. Consumers have the right of full disclosure of credit terms - so if you're in any doubt, be sure to ask for all the particulars.
This should help you as a consumer to get credit that's appropriate and manageable.
Of course, legislation is no substitute for the responsible use of credit. You still bear the responsibility of
using credit wisely, which will ensure you get the most out of your credit card.
Qualifying for credit in South Africa
Your eligibility for credit is determined with reference to your credit rating. To qualify for the amount of credit you find most useful requires a good credit history. If you have no history of using credit, you can build a credit history pay getting a credit card and repaying the amount charged in full each month. As the National Credit Act does not permit banks to lend to people with a bad credit rating, it is advisable to take basic steps to
improve your credit rating.
Once you understand how credit works in South Africa, compare the different credit cards available and choose the one with the most attractive combination of benefits to you.
