Retail store cards are credit accounts intended for purchases at the retailer and its partner stores. Some carry a cash withdrawal facility and some do not, and where one exists it is usually the most expensive way to use the card.
This page sets out what these accounts require, how any cash facility is priced, and what the cheaper options are when cash is what you need.
Eligibility Requirements at a Glance
Typical criteria for a retail credit account.
- Be 18 years or older with a valid South African ID
- A regular, verifiable income paid into a bank account in your own name
- A bank account able to carry a debit order
- Not being under debt review, sequestration or administration
- Satisfying the affordability assessment required by law
- An approved limit set by that assessment, not chosen by you
- Proof of residence, where the provider requires it
- A cash facility only where the specific account offers one
Identification and Account Requirements
The National Credit Act 34 of 2005 requires an affordability assessment before credit is granted: gross income verified, statutory deductions subtracted, prescribed minimum living expenses subtracted and existing debt repayments subtracted. Lending without it is reckless lending and is prohibited.
Ask whether a cash facility exists at all. Many store cards are purchase-only. Where a cash facility is offered, ask for the interest rate that applies to cash, any withdrawal fee, and whether cash attracts interest from the day of withdrawal rather than from a statement date. On most credit products it does.
Cash on a credit account is the most expensive form. No interest-free period, a withdrawal fee, and often a higher rate than purchases. Using a store card at an ATM, where that is possible, is close to the most expensive cash available.
Know the full cost of the account. The initiation fee, the monthly service fee, the interest rate on purchases and on cash, the credit life insurance premium and any club or loyalty fee added monthly. Ask for it in writing.
Club and value-added fees are common on store accounts and are frequently added at opening. Ask what each monthly line item is, and cancel the ones you did not want — some are optional.
Credit life insurance is generally compulsory and covers the balance on death, disability or retrenchment. You may substitute an equivalent policy of your own under the National Credit Act, and it is worth claiming on if any of those events happens — it is widely unclaimed.
Documents and Verification Required
The application document set.
- South African ID document, smart ID card or valid passport with a permit
- Latest payslip, or the latest three where income varies
- Latest three months’ bank statements, or electronic retrieval consent
- Proof of residence, where the provider requires it
- Banking details in your own name for the debit order
- A cellphone you control, for one-time PIN verification
Fees, Limits and Service Conditions
If you need cash, price the real options first. A personal loan from a registered provider over a defined term is usually cheaper than cash on a revolving retail account. An employer advance may cost nothing. So may an arrangement with the creditor you are trying to pay.
Compare on total repayable. Ask for the section 92 pre-agreement quotation on any credit — the National Credit Act entitles you to it and the terms are valid for five business days, which is enough time to compare two or three offers.
The account appears on your credit record, and the available limit counts as exposure in future affordability assessments. An unused store account reduces what you can borrow for a car or a home. Close accounts you do not use.
Limit increases require your consent. Decline the standing offer to be considered for automatic increases.
Contact the provider before missing a payment. Default interest, collection costs and a bureau listing follow a missed payment, and the listing outlasts the debt.
Repossession and enforcement follow prescribed procedures under the National Credit Act, including a section 129 notice giving you the chance to bring the account up to date or refer it to a debt counsellor.
If your obligations are unaffordable, debt review under section 86 restructures them through the courts via a registered debt counsellor, with legal protection from enforcement while you comply.
Never share a card number, PIN, password or one-time PIN with anyone.
How to Apply, Open or Activate
Apply in store or online with identity, income and address verification. Approval and the limit follow the affordability assessment and credit check.
Before using any cash facility, ask what it costs in writing and compare it against a personal loan over a fixed term. In most cases the loan is materially cheaper.
- Ask whether the account has a cash facility at all
- Ask what cash costs — rate, fee and when interest starts
- Expect cash on credit to carry no interest-free period
- Get the full cost of the account in writing
- Question every monthly line item and cancel optional club fees
- Ask whether you may substitute a cheaper credit life policy
- Claim on credit life cover on death, disability or retrenchment
- Compare against a personal loan on total repayable
- Close store accounts you do not use
- Contact the provider before missing a payment
Frequently Asked Questions
Can I withdraw cash on a store card?
Only where the specific account offers a cash facility — many are purchase-only. Where one exists, ask for the rate, the fee and when interest starts.
Why is cash on credit so expensive?
It generally attracts interest from the day of withdrawal with no interest-free period, plus a withdrawal fee, and often at a higher rate than purchases.
What are the extra monthly charges?
Commonly a service fee, credit life insurance and a club or value-added fee. Ask what each line item is — some are optional and can be cancelled.
Does an unused store account matter?
Yes. The available limit counts as exposure in affordability assessments and reduces what you can borrow for a car or a home. Close accounts you do not use.
Account terms, cash facilities, interest rates and fees are set by the retailer and its credit provider within National Credit Act limits and are revised. Confirm current requirements and the full cost of credit with the provider.