I wonder come July, retailers like this pub (pic above) will proudly put up the banner which says, "Good thing there's NETS!"
I would change it to "Good riddance to NETS!"
NETS has announced that from July, it will charge businesses between 1.5 and 1.8 per cent of the amount of each transaction. Previously NETS charge only 0.35 and 0.55 per cent. As you can see, this is no small jump and you bet that companies will be unhappy.
The Consumers Association of Singapore (CASE) has a lodged a complaint to the Competition Commission of Singapore. It has questioned the actions taken by NETS:
Its president, Yeo Guat Kwang, said: "You are telling me, you know now Toyota has to also fetch the same price as a Lexus... is this a reason? I don't see this as a reason, you can't accept such a reason.We are all consumers and most of us use NETS to pay for our purchases so I'm very sure that this will affect us - we may have to pay more just to use NETS which I think is totally ridiculous. So if you are a consumer or a retailer and you are unhappy with this decision by NETS, I think the best way is to let them know. Direct an email to their CEO Poh Mui Hoon or jam their phone lines. Tell those people at NETS that you won't be using NETS if they insist on taking advantage of consumers and retailers like this. Remember there's always an alternative such as debit cards, credit cards and good old fashion cash! If NETS think they can just do this without any repercussions, then they are so wrong.
"If it is cost factors, then they must come out to justify what are the main reasons... what are the key cost factors which will make them think that the current fee that they are charging, 0.3 to 0.55 is too low. Too low in what sense? Can't cover all the cost, or is the profit not enough?"
CASE is also worried that businesses may pass the cost increase to the consumers.
Although existing regulations do not allow this, Mr Yeo said retailers could still tweak product prices if they want to.
Good thing there's NETS? Good riddance man!
Update 26/06/2007 : The Competition Commission of Singapore said that the fee increase by NETS is not an infringement of the Competition Act. It added that there are alternative payment methods such as credit, debit and EZ-Link cards that consumers can use.