Latest Marketing…No GST & No Nets Fees!
In view of the latest row of complains (15) to CASE that retailers illegally passed the cost of using NETS directly to the consumer. There should be a flurry of activities in the marketing departments to make use of this news to become an advantage to the retailers.
“No GST and now extra Nets Fees” as their marketing slogan?
Seriously the article says that the small retailers can no longer absorb the higher Nets fees hike that had increased since July 2007 last year.
I got the eerie feeling that the bank might start charging people withdrawing cash from the ATM to curb them from using cash to pay for their goods and services and indirectly charge more for NETS to retailers.
I am not sure why they need to charge extra for NETs unless they are having a tough time…recently the collapse of America’s Federal Indymac bank and pending doom of Freddie and Fannie mortgage financial giant give a new “revelation” to the word “Bank Run“.
With S’pore’s Temasek invests another $1.2 billion in Merrill Lynch even though the bank is making losses and faces more trouble ahead. Temasek’s investment portfolio includes DBS Holding as well as many other companies.
I feel that it may not be the bank’s fault as Network for Electronic Transfers (Singapore) Pte Ltd that provide the NETs services may be the one asking to hike the charges to use their facilities to either provide better profits or reduce losses.
Either way, the hike of NETs charges are making life difficult for small retailers that can no longer absorb the additional charges by NETS hence the illegal passing of charges. I don’t mind getting discount if I pay by cash hence indirectly avoiding paying for the charges…
Soon, more people will be carrying wad of cash in their wallets with higher risk of being robbed…and unable to achieve the desired “cashless society” of convineice and hassel free shopping.
I suggest alternative payment methods such as existing “EZ-Link” card that we use for MRT & Bus transactions. It’s already being deployed by Macdonald for payment and have other “smart” capabilities to store points and membership details if required. If the retail charges are not higher then NETs then “EZ-Link” may gain wider retailer preference of choice to peddle their goods in the future.
In Hong Kong, the “Octopus” card is similar in nature compared to “EZ-Link” but have much wider usage. It’s also used to pay public transportation fees (except Taxis and some public minibuses), as well as retailers who accept Octopus, such as convenience stores or restaurants.
Now that it also comes with a smaller key chain size version of Octopus card for better handling together with keys which may be beneficial for those who uses key chain pouch instead of wallet.
I suggest the following to “Ez-link”.
- Increase the maximum top-up to $100 or $200 per transaction at MRT Station.
- Put a GPS tracking RFID device inside in case it’s lost and can be tracked down by Internet Mesh-up Goggle map.
- Put photograph of the user on one side of the card to prevent usage by unauthorized user.
- Invent a wallet that prevent unauthorized deduction by accident or by criminals using a device near your wallet.
- Charge lower fees then NETS to retailers.
- Rent out the “EZ-link” reader to more retailers & restaurants.
- Expose more usage for the “EZ-Link” to even cabs, ticketing purchase, AXN & SAM machines, Movie Tickets purchase and more.
