| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: Most of the 13,000 merchants who accept payment by NETS have agreed to continue doing so, despite incurring higher costs as of 1 July.
This is according to NETS which has also offered to lower the levy to smaller retailers.
But the catch is - these shops cannot have other debit or credit payment facilities.
The higher NETS levy is likely to wear down profits, said shop owner Madam Khor Kim Liew.
She used to pay a NETS fee of 0.55 per cent of customers' purchases, but that rate has since doubled.
As half of her customers pay by NETS, Madam Khor is considering giving up her credit card facilities, to enjoy a lower NETS fee rate.
"If the fee is lower, I can lower the retail price, and usually the customers won't want to pay extra. So if NETS charges more, I earn less. No choice, if customers want to pay by NETS, I have to accept or I'll lose the business," said Madam Khor of Liew’s Creation.
But other retailers do not want to go without credit payment facilities, even though NETS transactions account for 60 per cent of monthly sales.
"We need both. Credit cards offer promotions and allow customers to pay by instalment. Some people don't carry NETS cards with them and besides, credit cards are widely accepted," said Kelvin Yaw, Shop Assistant, The Handphone Shop.
Still, many heartland retailers say they may have to mark up retail prices to cope with the higher NETS charges.
The other option is to encourage consumers to pay cash, but that is not always easy.
On average, about 70 per cent of the customers at IKEA pay by NETS and Credit Cards because it is more convenient.
Some say they prefer NETS as it allows them to keep track of their expenses, while others say credit cards offer more rewards.
For now, many shoppers are not too concerned about the NETS fee hike, saying that it is a matter between retailers and the operator.
But some customers say they would not be happy if retailers insist on using NETS only.
"For convenience I don't think they should do away with the credit cards," said customer Victor Ong.
"It's not a good idea because a lot of people now use credit card as a mode of payment, so if you don't accept credit card and they only bring credit card, you will lose the sale," said another customer Alfred Chee.
Whichever mode of payment, furniture store IKEA said there was a rise in spending among its customers, ahead of the two percentage point increase in the goods and services tax to seven percent.
Lars Svensson, Country Marketing Manager, IKEA, said: "With the last couple of weekends, we've seen a slow increase in average ticket, but other than that, yesterday's sales that we had - it was quite a normal Sunday.
"We didn't see a drastic drop, but it was definitely a build up leading up to the first of July."
While the GST hike is in full swing, Channel News Asia understands that the new NETS fee rates have not kicked in for some retailers, as they are still in negotiations with the operator. - CNA/yy
|
