Throw NETS away day!
Is NETS' decision to up their charges justifiable? Have they been really doing a great job that upping the charges is because of their superior skill and quality of the product? No. I don't know how the Singapore law works and how the Competition Commission works. But under Federal Anti-Trust laws, I would think that it is definitely unlawful and unreasonable for NETS to say that they are not breaching the law, and that a 1.8% transaction fee is justifiable as it is still lower than what major card companies charge at 2%.
For one, NETS holds a significant market share in Singapore. I would believe that 99.99% of adults or almost a 100% of working adults in Singapore hold a card equipped with NETS capabilities, and there according to NETS website, there are 30,000 NETS terminals in Singapore. This is an obvious monopoly.
Second, by suggesting that consumers and merchants have alternative form of payment, and they are allowed to choose, is unreasonable. It was due to the low cost benefits on the merchants' part, and the pushing of the card by local banks that it is now the most widely accepted form of payment. Now they are suggesting that after dominating the point-of-sale terminals in Singapore, people can choose not to work with them? This is like going with peace with foreign troops, get into their camps, and saying "We want to go to war!" while the other troops are unprepared and you slash their throats. Unethical.
Thirdly, if you visit NETS website, you would see a poll there. And what a skewed poll it is. It asks, "Do you know merchants pay higher transaction fees if you use international debit cards for payment?" This is definitely a directive question. Rather than asking, its giving information to the respondents!
Fourth, I don't know what kind of games is NETS playing. It started off saying that merchants are not allowed to charge consumers for transactions. Then, its cousin, GLC ComfortDelgro installs NETS on cabs in Singapore and charges administrative fee for which, not only does NETS make a profit from, so does Comfort.
Finally, I'd like to know what superior quality does NETS have over international credit and debit card companies. Can it be used internationally - don't tell me you could use them in China. Don't tell me about the sort of lucky draws NETS have, because not only does issuers of credit and debit cards have them, theres a point earning system which allows redemption of sorts as well.
So let us start by wiping out the NETS terminals in Singapore, and switch to the more convenient mode of payment - international credit and debit cards.
June 26th, 2007 at 10:46 am
[...] and Gadgets, Random Thoughts. trackback Frankly speaking, I’m very disappointed that NETS still won its fee hike. Ridiculous, I say. Competition? True but you don’t just up the transaction fees at this [...]