Friday, October 26, 2012

Fee for credit card payment


25 October 2012

Editor, Voices
Today Paper

I wish to follow up on the letter by Alvin Ho (many companies
still charging swipe fees, Today, xxxxx 2012).

He said that in July, the Association of Banks in Singapore (ABS),
and the credit card companies had stated in the media
that merchants are not allowed to pass on any form of 
surcharge/swipe fees/administration charges to consumers
when they make payments with credit cards.

Recently, I booked a ticket with JetStar Asia and was given 
the option to pay by credit card (and incur an administrative charge of $18) 
or to pay using NETS at several outlets (and be free of the charge).

I am sure that the low cost airline incurs a higher cost to process
the NETS payment, rather than the credit card payment. It is ridiculous 
for the airline to encourage its consumers to adopt a more inconvenient 
and more costly way to make the payment.

I understand that the merchant now has to pay a high fee to the bank 
for the credit card payment. 

The ABS should ask its member banks to reduce their charge that they 
impose on merchants, so that in turn the merchant can offer the credit
card payment to their customers without the additional charge.

Tan Kin Lian
President

Financial Services Consumer Association

1 comment:

Sauw Ming Liong said...

Why would the banks want to reduce their charges and potentially lose hundreds of thousands of income just so that the merchants won't impose additional fees? They would rather close one eye for this "violation" just like what they've always been doing. The same goes for the rule saying that there should be no minimum charge for using credit card payment.

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