Nets has recently announced that their transaction fees will increase from average of 0.45% to 1.7%. That’s more than 277% increment!!!
The reason given by NETS, which is jointly owned by DBS, OCBC and UOB is that the hike is necessary to stay competitive against international debit cards, which have higher charges and offer more attractive returns to card issuers.
I find this reason unconvincing and contradicting. What do businesses and retailers do to increase their competitiveness? That’s right, they either offer discount or improve their services, or they’ll do both. NETS does totally the opposite, they increase their fees! Take note that they are interested to “offer more attractive returns to card issuers“.
Personally, I don’t see this as a big deal. Take a walk at Sim Lim Square and buy something, and ask whether you can pay by credit cards, and you’ll see what I meant. The merchant there usually charge an additional 3% if you pay by VISA or Mastercard, and 4% if you pay by Amex. So what’s the big deal if they tell you that they’ll charge 1.7% for using NETS? Can’t we just walk to the nearest ATM and withdraw some money to pay for it?
It’s all a matter of Demand and Supply. As long as somebody is willing to pay the surcharges and avoid the inconvenience of walking to the ATM, it will not go away. The concept of using credit cards is similar. Are you willing to pay the surcharge for that extra convenience of buying things on credit?
If you don’t want to pay the surcharge, then don’t use the cards. If you don’t mind paying more, than don’t complain.
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