PayNow but pay extra? Some retailers still charging customers more for transactions
For some retailers, it seems convenience may come at a price - not only for them, but also for their customers.
A minimart in Hougang has been called out for charging a 30-cent surcharge for PayNow transactions, Shin Min Daily News reported on Thursday (March 7).
This comes after regulations were put in place this month by the Association of Banks in Singapore (ABS), prohibiting merchants from charging customers extra for PayNow transactions.
Visiting the minimart on Tuesday, however, Shin Min discovered that the shop continued with imposing a surcharge despite the new regulations.
The shop's clerk was unable to answer the reporter's questions.
Later, a man who didn't want to be identified told the Chinese evening daily that the minimart needed to pay $1,000 per month to Nets - a cost that the shop could not afford.
However, customers would be notified of the surcharge before making their purchases and no one is forced to use PayNow, the man said.
He added that customers who spend at least $50 would not need to pay this surcharge when using PayNow services.
Although the reporter explained that the ABS has prohibited merchants from enforcing this surcharge, the man tried to justify the store's decision.
Because Nets charges merchants, merchants should then be able to pass it on to customers, he said.
'Not worth it', customers say
About one in 10 of the minimart's customers would use PayNow for their purchases, Shin Min noted.
[[nid:642764]]
One customer named Haza shared that he didn't take any cash with him when he left home, so he had to use e-payment. The cashier also informed him of the surcharge before he made payment.
However, the 24-year-old civil servant admitted that he wasn't aware of the changes recently introduced by ABS.
"We are now in a cashless society. I've been here several times without cash, but now that I know about these new regulations, I probably won't patronise merchants that impose these surcharges anymore," he told the Chinese publication.
Another customer, surnamed Bai, 15, told Shin Min that he would frequent the minimart about two times a week, and his purchases mostly wouldn't exceed $2.
"Today, I bought a bottle of water for 60 cents," he said. "If I had to pay an additional 30 cents, that's a 50 per cent price increase - that's not worth it."
Not allowed to pass on PayNow fee costs to consumers, ABS says
Following reports of a merchant charging an extra 20 cents for PayNow transactions in August last year, ABS Director Ong Ai Boon told AsiaOne that they were formalising PayNow scheme rules.
According to the ABS, banks and payment service providers charge merchants or businesses a fee for "optional value-added services provided for PayNow collections".
"The PayNow scheme does not allow merchants/businesses to pass on such costs to the end-consumers."
Merchants who breach this rule will receive "necessary remediation", which could include the suspension or cancellation of their PayNow services.
Should customers encounter merchants who charge extra for PayNow transactions, the ABS suggests trying alternative payment methods.
If payment has already been made, there is no guarantee that the fee can be returned.
ALSO READ: Seafood restaurant loses $4,600 after diner pays for meals with fake PayNow screenshots
khooyihang@asiaone.com
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
