Nets Raises Charging Transactions June 5, 2007Posted by WishBoNe in Emotions & Feelings, Food and Drinks, Random Thoughts, Technology and Gadgets.
Well, well, well, now then I know that NETS charges 0.3% per transaction. This used to be absorbed by shops. They are increasing the charges to between 0.55% and 1.8%. Some shops are going to pass these charges to the consumer. How thoughtful. Their explanation?
NETS has explained that the increased cost is necessary to make it viable in a market flooded by international debit cards, such as VISA or MasterCard. Card issuing banks prefer to issue international debit card as they receive an Interchange Fee, which is a fee given to card-issuing banks for processing transactions.
Now, we have a GST Offset package, is that why they think that we would be able to afford the increase? We have to buy a lot of things especially food and beverages. So, the package should be enough to cover the increase? No. It won’t.
The raise will be effective on 1st July. How very thoughtful indeed. We are only informed less than a month to the increase in GST. So, we will be paying 7% GST + 1.8% NETS whenever we buy anything and pay via NETS. Great. Just. Great.
Since NETS is the only official so-called low cost card, it is also the largest organisation that is able to implement such cashless transaction across the country. In addition, it is able increase their cost per transaction to time with the GST increase. Isn’t that business profit thinking?
Why are such transactions are not transparent to the consumers? Was it ever stated in the first place so that we as consumers know that there are underlying costs?
Update: Increase was noted in May by mrbiao. It’s obvious that profiteering is the issue here. Another thing to note is that transactions for Giro especially electric bills, EZLink and other various payments via NETS will be affected. Once in effect, will everyone start to carry large bundles of notes? Will the ATM queue be even longer?