Why aren't petrol pumps across Bahrain accepting debit or credit cards?

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Legions of customers are upset over the disallowance of debit and credit cards at petrol pumps across Bahrain, which they say is making their life miserable. A good majority of petrol pumps in Bahrain only accept cash payments or special cards issued by petroleum companies.

The customers say this system is not in line with the digitization policy currently being implemented in Bahrain as well as across the region.

This comes amid Bahrain’s authorities planning to increase the number of fuel stations from the existing 48 to 80 in the next two years with an aim to develop and improve oil services across all governorates. “This is something that is pulling us backwards.

On the one hand, we are talking of digitization of services and on the other, we have systems such as this in place, where our existing digital wallets aren’t permitted,” said a customer, who doesn’t want to be named. He added that he has seen debit, credit cards being accepted at petrol pumps in all countries where he travelled.

Another customer said it is a practice that should be changed immediately. “After entering the premises of petrol pumps, we often realise that we don’t have cash with us to pay. And there wouldn’t be any ATM machines in the vicinity. “Now, one would naturally ask as to why can’t I carry the cards issued by petroleum companies to make life easier. There is nothing wrong with it.

But, why should I carry them when my digital wallet already consists of two credit cards and three debit cards.” He urged the authorities to issue directives in this regard. “These petrol pumps can charge us a service fee according to the bill. I am sure nobody would get upset over this service fee as this will clearly make their lives more convenient.” Speaking to The Daily Tribune, a financial expert said credit, debit cards are not allowed at petrol pumps for one reason.

“Apparently, the oil company doesn’t want to incur the charges involved in payment transactions, mainly to the payment network companies. To avoid these charges, they have introduced their own cards that could be used across all petrol pumps. But the bigger question is that how many people have these cards with them?” Payment network companies generally earn from transaction processing fees. Last year, there was a proposal from the part of lawmakers in Bahrain to turn petrol pumps ‘smart’.

As per the proposal, reader chips would be installed on the fuel lids of motorists at a particular cost. It would be then linked to the Sadeem fuel payment mobile application while providing options for the type of fuel and amount. Once the tank gets filled, the amount purchased would be automatically deducted from debit or credit cards or BenefitPay. The suggestion has since then sparked a heated debate with worries that pump attendant jobs could be lost as such technological initiatives are implemented.