1. DEFINITIONS

1.1.      “account” or “account number” means the member’s unique bsmart account number with linked purchase limit as agreed between the parties;

1.2.      “agreement” means the agreement between the member and Cape Consumers for bsmart membership and the use of the bsmart card on these terms and conditions;

1.3.      “application” means an application for bsmart membership and use of a bsmart card on these terms;

1.4.      “bonus” means the bonus referred to in paragraph 6.2;   

1.5.      “bonus qualifying purchases” means purchases of goods and/or services that qualify for a bonus in terms of Cape Consumers’ policies;

1.6.      “bsmart membership” or “membership” means the Buyers Reserve Fund membership as provided for in our Memorandum of Incorporation and Articles of Association in terms whereof Cape Consumers administers a buy aid for and on behalf of members, including a rewards offering and bonus as referred to in clause 6.2;

1.7.      “Buyers Reserve Fund” means the fund established by the company, for the members in terms of the Memorandum of Incorporation;  

1.8.      “Cape Consumers” or “company” or “us” or “we” or “our” means Cape Consumers (Pty) Ltd, Registration No. 1955/003218/07, of Atlantic Centre, 3rdFloor, 14 Christiaan Barnard Street, Cape Town and VAT no. 4320104542;

1.9.      "card PIN” means a unique numeric password that you enter at the payment terminal, point of sale (POS) device, when you make a payment for purchases at a retailer;

1.10.      “card” or “bsmart card”means the bsmart transaction card, a valid electronic card issued by the Co-operative Switch (Co-switch) or Innervation for members to facilitate transactions with retailers;

1.11.    “due date” means the date that payment is due to Cape Consumers for purchases made from retailers during the trading period, and which date will be the last day of each month;

1.12.    “member” means a person who has entered into an agreement on these terms and is described as a “buyer” in our Memorandum of Incorporation;

1.13.    “mobile app”means a software application downloaded by the member on his/her mobile device used as a point-of-sale integrated mobile payment application provided by a third party and by use of a QR code and pin;

1.14.    “purchase limit” means the maximum amount allocated to a member and for which a member may purchase during a trading period through use of the bsmart card, mobile app or account;

1.15.     “retailer” means any participating supplier of goods and/or services who has entered into a retailer agreement with Cape Consumers in terms whereof goods and/or services will be supplied to members against payment utilising the bsmart card, mobile app or account;

1.16.    “Co-Switch” or “Co-operative Switch” means Co-Operative Switch (Pty) Ltd, Registration No. 2017/390256/07;

1.17.    “trading period” means the period commencing on the 16th day of each month and terminating on the 15th day of the following month, or any other period that Cape Consumers determines from time to time. 

 

2. INTRODUCTION

2.1        Cape Consumers’ main business is to carry on and conduct the business of a buy-aid for and on behalf of members. Cape Consumers assists members to effect economies and savings in regard to their expenditure. Cape Consumers effects this by using the combined purchase power of their members to negotiate discounts from retailers which will form part of the Buyers Reserve Fund from where members’ bonuses will be paid.

2.2        You need to apply for membership. Part of the application process involves a financial risk assessment in terms of Cape Consumers’ internal risk rules to determine a purchase limit for which the member may purchase during a trading period.

 

3. INITIAL SETTING OF CARD PIN

The bsmart card is distributed to the member by registered mail or by courier or other means. For activation of the card on the Cape Consumers system and to be able to utilise the card to make purchases, the initial setting of the card PIN is required.

 

4. APPLICATION FOR MEMBERSHIP

4.1       Any person that meets the minimum requirements in terms of Cape Consumers’ internal risk rules may apply for membership.

4.2       As part of the process Cape Consumers will consider the applicant’s financial and other relevant personal information and determine a maximum purchase limit for which the member may purchase from retailers during a trading period.

4.3       Cape Consumers determine their internal risk rules in their own discretion in the interest of the company and the members.

4.4       You may apply for an increase in your purchase limit at any time after becoming a member and Cape Consumers will consider the request in accordance with their internal risk rules. They may in their own discretion determine whether to allow the application for an increase or not.

4.5       Cape Consumers may allow you to apply for membership and to enter into the agreement with Cape Consumers by telephonic or electronic means.

4.6       As part of the application process you are required to answer all questions truthfully and you agree that we may share your information with third parties, including credit bureaus for purposes of your application and your agreement with us.

 

5. GENERAL USE OF THE BSMART CARD AND ACCOUNT

5.1       Members may use the bsmart card, mobile app or bsmart account number (where applicable) to facilitate payment for goods and services from retailers.

5.2       Although no immediate payment to the retailer takes place when you use the card, mobile app or account number, no interest will run from date of purchase, as this is not a credit agreement.

5.3       The bsmart card and mobile app can only be used by the member at retailers who have agreements with Cape Consumers. A list of these retailers will be communicated to the member on a regular basis.

5.4        Cape Consumers receives members’ transactional details from Co-Switch or WiGroup as the authors and processors of the transactions through card, mobile app and account. Cape Consumers will claim payment from the member for the value of the transactions incurred by the member on the bsmart card, mobile app or account for the trading period. The payment will be due to Cape Consumers by month end of the month in which the trading period ends.

5.5      At point of purchase and on condition that the transaction is approved by the Cape Consumers system, the retailer will release the goods or services immediately and claim payment for the goods and services from Cape Consumers in terms of the agreement between Cape Consumers and the retailer.

5.6       At a member’s request, Cape Consumers may issue secondary cards to one or more persons nominated by the member. The member remains responsible for all amounts owing on the account and the purchase limit will not increase as a result of secondary cards issued.

5.7       You may only use the card and account to purchase goods and/or services. In addition to other functionality you may also use the mobile app to purchase goods and/or services at participating retailers. The card, mobile app and account may not be used for payment of any retailer accounts unless specifically permitted by Cape Consumers in terms of an arrangement agreed between Cape Consumers and a retailer and agreed in writing by Cape Consumers with the member.

5.8       We will provide you with a list of all participating retailers on request.

5.9     You can tender the card, mobile app or account number (where applicable) to the retailers for payment of goods and/or services to the maximum amount of your monthly purchase limit available at the time of the purchase.  

5.10     We are not liable to pay any entity or person who is not a retailer as defined in the agreement.

5.11     The card will never become your property and you must return it to us on termination of membership or on request.

5.12      You must take proper care of your card, including taking all possible steps to prevent any person who does not have the authority to use it, from using it, or to prevent the card from being lost, stolen or damaged.

5.13     The card pin must be kept private and may not be shared with anyone else.

5.14     If the card is lost or stolen or if you become aware that the card has been used by any unauthorised person, you must tell us by phoning (021) 409 7600 during office hours on business days (08:00 – 16:30) or for after hours as noted on the back of the card or the Cape Consumers bsmart website (www.bsmart.co.za).

5.15     Once you have reported the theft or loss of a card, Cape Consumers will not hold you liable if someone uses the card after you notified us, unless:

5.15.1      your signature appears on the voucher, sales slip or similar record confirming that you used the card; or

5.15.2      the card pin was compromised (used by someone other than yourself); or

5.15.3     we have other evidence that is satisfactory in our opinion to reasonably confirm that you authorised someone else to use the card, mobile app or account.

5.16     You agree not to exceed the purchase limit. If we in our discretion settle any transaction or purchase that exceeds the purchase limit, this does not mean that we have increased your purchase limit permanently.

 

6. BSMART MEMBERSHIP AND MEMBER’S RIGHTS

6.1        The provisions of our Memorandum of Incorporation, as may be amended from time to time with the approval of a resolution of the buyers passed with a two thirds majority at a special general meeting of the buyers and at which meeting at least 50 (fifty) buyers are present, regulates the affairs of Cape Consumers in relation to the buyers. These affairs include but are not limited to, the Buyers Reserve Fund, general meeting of buyers, the rights of the general meeting of buyers to appoint shareholders of Cape Consumers, and the rights of the buyers at the winding up of Cape Consumers.

6.2        The bonus may be paid annually, quarterly or more frequently as determined from time to time by Cape Consumers. Should a member wish to change the frequency from quarterly to annually or vice versa, the member must give Cape Consumers notice on anniversary of membership. In the event of the member terminating membership, any bonus due will be credited to the member’s account and paid out. The bonus calculation may differ from member to member, taking into account amongst other the member’s monthly spend on the card. No bonus will be payable in relation to the full amount of bonus qualifying purchases for a trading period where the amount due was not paid in full on or before the due date.

6.3        Please note that not all purchases may qualify for the bonus payment referred to in clause 6.2 above.

6.4       We may decide at our sole discretion to make payments to the Buyers Reserve Fund. Our Memorandum of Incorporation allows us to distribute your share of these payments when the agreement terminates, provided that if the agreement terminates due to your breach of contract, you will not receive any payment and you will forfeit your right to receive any payment.

 

7. MEMBERSHIP FEES AND OTHER CHARGES

7.1        Subject to clause 9.2 below, you will pay a monthly bsmart membership fee of R 120.00 in consideration for the services that we provide. These services include the management and administration of the Buyers Reserve Fund and negotiating with and regulating the relationships with participating retailers.

7.2        If your card is lost or stolen, a replacement fee of R 69.00 per card will be charged.

 

8. STATEMENT OF ACCOUNT

8.1        Unless otherwise agreed we will deliver a monthly statement of account to you by email to the email address provided in your application.

8.2        The statement will show:

8.2.1    the monthly membership fee;

8.2.2    the purchases for the month;

8.2.3    the annual interest rate that applies to overdue payments;

8.2.4    the interest for the month (if applicable);

8.2.5    the total amount due on the date that the statement is processed.

8.3        The monthly account statement is prima facie (on the face of it) proof of your debt with us for the purchases from retailers and you agree that if you dispute that, you will have to prove that.

8.4       As the member it is your duty to make sure that you receive your monthly statement. If you have not received your statement, you must inform us in writing. If you did not receive a monthly statement, for whatever reason, it does not mean that you do not have to pay the amount that is due and payable to us.

             

8.5       It is important that you check your monthly statement to make sure that it is correct. If you do not agree with any item or entry on the monthly statement, you must write to us within 30 (THIRTY) days of the date of the statement and inform us why you do not agree in order for us to investigate it, obtain the relevant documents and make the necessary enquiries. In the interim you must still pay the full amount due to us as shown on your monthly statement. If there was indeed an error, we will refund you the amount that we owe to you.

 

9. PAYMENTS

9.1        You must pay the full amount due as per your monthly statement of account on the last day of the month for which the statement applies.

9.2        You agree to pay interest on any amount outstanding after the due date for payment. Unless otherwise agreed by Cape Consumers, the interest rate that will apply to overdue balances will be the maximum rate for incidental credit agreements allowed for by the NCA.  

9.3        You must pay all amounts shown in the monthly statement or account that are due to us, on or before the due date. This obligation to pay applies whether or not:

9.3.1    the amount recorded in respect of any such purchase is correct; and/or

9.3.2    there is any dispute between you and the retailers; and/or

9.3.3    the retailers can receive payment from any other source or party.

9.4        If you have chosen to pay by debit order, the first payment will be due as indicated in your first monthly statement. The debit order deduction will appear on your bank statement as “CAPE CONSU” followed by your bsmart account number.

9.5        If the due date for payment during any particular month falls on a Sunday or public holiday, the payment due date will be the last business day before the public holiday or the Friday before the Sunday.

9.6        The debit order mandate will continue until the total amount due in terms of the agreement is repaid in full and you agree not to (i) cancel the debit order; (ii) close the bank account; or (iii) allow your salary to be paid into another bank account before the total amount due in terms of the agreement has been paid in full, unless you have given us one month’s written notice.

9.7        If you give such notice and cancel the debit order mandate, the cancellation will not cancel the agreement.

9.8        You will not be entitled to any refund of amounts which we debited in terms of the debit order mandate if you legally owed these amounts.

9.9        Should you require any further assistance, please contact us on 021 409 7600 or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it..

 

10. EARLY SETTLEMENT

You may settle the total outstanding balance, whether due or not, at any time prior to the last day of the month. You do not need to inform us in advance, but if you want to settle the full outstanding balance, you must pay us the total unpaid outstanding balance in terms of your Cape Consumers account at the time of settlement.

 

11. MEMBER’S RIGHT TO CANCEL

11.1     You may cancel the agreement by paying the total amount owing to us, in terms of clause 10.

11.2     Before you make the final payment, you must request the total amount owing to us and we will confirm the amount either telephonically, or via fax or e-mail.

11.3     Please confirm to us in writing if you intend to cancel the agreement.  

 

12. ADDRESS FOR NOTICE

12.1     Cape Consumers chooses the address on the application form, as the address where we will accept all documents, pleadings and notices from you in connection with the agreement.

12.2     You choose the residential address on the application form, as your domicilium citande et executandi (the address where a summons or other legal documents or notices will be delivered to you) to accept service of all documents, pleadings and notices from us in connection with the agreement.

12.3      Any party that wants to change the addresses for this purpose must notify the other party in writing what the new address will be.

 

13. USE OF PERSONAL INFORMATION

13.1     We will use your personal information for purposes of the relationships between us and in accordance with the provisions of our privacy policy as set out at www.bsmart.co.za.

13.2     We may make enquiries with third parties to confirm whether the information that you supplied during the application process

             or at any time during the term of the agreement, is correct.

 

14. BREACH AND TERMINATION

14.1     The agreement is not for a fixed period and will continue until either party cancels it in terms of the agreement.

14.2     If you do not make payments in terms of the agreement, you will pay interest on the amount that is in arrears.

14.3     If you are in breach of the agreement, the full outstanding amount (including capital, interest and fees) will immediately become due and payable and you may be liable for other costs that the law allows us to charge, like collections costs.

14.4     We may also proceed with legal action against you to enforce the agreement.

14.5     You agree to receive notices (including but not limited to a notice in terms of section 129 of the NCA) by registered mail at your domicilium address which is the address stated in the application form or if your address has changed, your new address, subject to you informing us in writing of the change in address.

14.6     If you agree with Cape Consumers to pay any outstanding amount in monthly instalments after we have suspended or terminated your account and membership, it does not mean that we have re-opened the account or that the membership agreement enacted again.

 

15. EFFECT OF BREACH

15.1     If you breach any term of the agreement, we may without limiting any of our rights in terms of the law, terminate your membership, cancel the use of the card/s, mobile app and/or account immediately and demand that you pay the full outstanding balance which will immediately become due and payable and immediately return the cards to us.

15.2      We may hand over your debt to attorneys or debt collectors for collection in which case the permissible charges as allowed for in law will apply.

15.3     If you exceed the approved purchase limit, this will be regarded as a breach of the agreement and all outstanding amounts will become immediately due and payable.

15.4     If any of the parties take legal action to enforce the agreement (including legal action against you to recover any amount due to us), the parties agree to:

15.4.1   the jurisdiction of the Magistrate’s Court even if the amount claimed is more than what the Magistrate’s Court normally be entitled to determine; and

15.4.2   pay all legal costs on the scale as between attorney and client, which will include interest, tracing fees and collection commission, as the case may be.

15.5     If you breach the agreement you will forfeit the bonus payment for the months where you were in breach and you will forfeit your share of the Buyers Reserve Fund as provided for in clause 6.2 and clause 6.4.  If we terminate the agreement due to breach, you will forfeit any bonus payments and your share of the Buyers Reserve Fund that would have been due to you at the date of breach of the agreement.

15.6     You agree that we can appoint a tracing agent, if you breach the terms of agreement and we are not able to trace you.

 

16. CESSION

16.1     You hereby authorise us to cede (transfer) to any third party, all rights title and interest in and to all or part of your debt with us.

16.2     You may not cede (transfer) any of your rights or duties in terms of the agreement to any party without our written consent.

 

17. WAIVER

If we do not exercise or enforce all our rights it will not mean that we waive (do away with) our rights in terms of the agreement.

 

18. FOR AND ON BEHALF OF LEGAL ENTITIES

If you are a legal person, the natural person who enters into the agreement on behalf of the legal person, warrants that he/she is duly authorised to do so and accepts responsibility for payment of the amount due in terms hereof, as surety and co-principal debtor with said entity.

 

19. ACCEPTANCE OF AGREEMENT 

By setting the card PIN you confirm your acceptance of these bsmart Terms and Conditions.