I went to the hardware store today, and they told me they were no longer accepting NETS payments, just cash. Looks like we better start drawing more cash at the ATM from now on.
But hor, NETS CEO Poh Mui Hoon says their 400% merchant fee hike "is not a consumer issue in any way, and it should not be made out in any way to be one".
Suuuuuure, merchants affected only mah. Why should customers be worried? Merchants will not pass the costs to customers one! Retailers are not allowed to transfer the extra fee directly to consumers what!
Besides, all of you should be used to a monopoly raising their charges as and when they like. Ministerial pay hike, GST hike, and now NETS hike.
Anyway, their reason seems reasonable what!
"...there has been a growing trend of merchants accepting debit cards by international card schemes. As a result, more international debit cards have been introduced to the market. To sum up, Nets is a debit payment facility facing competition from international card schemes. To respond more effectively to this increasing competition, Nets has had to align itself with the business model of the international card schemes."
The X-files logic is airtight! Let me see if I can translate that into English.
"Many merchants now accept debit cards. Debit cards charge higher merchant fees. So NETS must charge higher merchant fees to fight back this competition."
"Er, why not charge less?" you ask. Then more people will use NETS instead of debit cards.
Aiyah, don't talk about high finance and banking lah. We are just clueless customers!
Says NETS, "...the price realignment exercise ensures Nets' viability as a business, to continue serving the interests of card issuers, consumers and merchants here. Without the future presence of Nets to protect merchants' interest, merchants will be left paying the higher rates charged by the international card schemes."
So you see! The NETS hike is to PROTECT the merchants! Because, if the NETS folk do not raise their fees, they may be forced to abandon NETS because, hey! Debit cards are more profitable! Such a noble, socially responsible monopoly is NETS! NETS CEO Poh Mui Hoon was already talking about helping merchants in 2004! Read this quote:
"The mindset change was possible because electronic payment was able to deliver on its promises: Convenience for consumers; lower processing costs and higher security for merchants." -Show me the E-money!, Computer Times, 2004)
Er, ok, the lower processing costs thing is not applicable in 2007. But still got security leh!
But I'm still going to go back to cash. Cash is better anyway. You spend less, you are more aware of the money you have in your wallet (doncha just hate breaking a $50 note?) and you are less prone to impulse buys.
Cash is king!
