Monday, July 02, 2007
Hooray for Preferential NETS Rates!
After all the hoohah over the increase in NETS merchant fees, there seems to be a silver lining after all! NETS will be offering preferential rates to retailers who do not have any other form of cashless payment facility.
The preferential rates could possibly be from 1.05% to 1.15%. There will also be a rebate of 25% until December 2007.
What this means:
1) The retailer must have NETS as their sole form of cashless payment to be eligible.
2) The retailer now incurs a mere fee increase of between 109% to 200% as opposed to the increase of 227.27% to 328.56% for retailers who do not receive the preferential rates.
If you, the astute reader, would remember, it was merely last week when the Competition Commision of Singapore decided that what NETS is doing is not anti competitive.
It goes on to say that:
And as my failed logic continues to falter, I cannot work my mind into fathoming how the current preferential rates being offered by NETS is not abusing it's dominant position.
The retailer is enticed into not using any other form of cashless payment, as such, people will be required to use NETS or lug truckloads of cash around.
I'm being positive about this whole thing. Totally. In fact I will show my support by using only positive words for my closing.
Yeah, right.
0 Adorations
After all the hoohah over the increase in NETS merchant fees, there seems to be a silver lining after all! NETS will be offering preferential rates to retailers who do not have any other form of cashless payment facility.
The preferential rates could possibly be from 1.05% to 1.15%. There will also be a rebate of 25% until December 2007.
What this means:
1) The retailer must have NETS as their sole form of cashless payment to be eligible.
2) The retailer now incurs a mere fee increase of between 109% to 200% as opposed to the increase of 227.27% to 328.56% for retailers who do not receive the preferential rates.
If you, the astute reader, would remember, it was merely last week when the Competition Commision of Singapore decided that what NETS is doing is not anti competitive.
It goes on to say that:
the Act is only relevant when a party acts in a manner that abuses its dominant position.I would like to draw the kind reader's attention to the following line
The Commission added that in this case, there are alternative payment methods such as credit, debit and EZ-Link cards that consumers can use.
Section 47 of the Competition Act prohibits firms with dominant market power from abusing it in ways that are anti-competitive and work against long-term economic efficiency.
The Commission added that in this case, there are alternative payment methods such as credit, debit and EZ-Link cards that consumers can use.Which when read in conjunction with THIS line:
Section 47 of the Competition Act prohibits firms with dominant market power from abusing it in ways that are anti-competitive and work against long-term economic efficiency.has misled me into thinking that as long as there are other forms of cashless payments available at the retailer, it is not considered an abuse of NETS dominant position.
And as my failed logic continues to falter, I cannot work my mind into fathoming how the current preferential rates being offered by NETS is not abusing it's dominant position.
The retailer is enticed into not using any other form of cashless payment, as such, people will be required to use NETS or lug truckloads of cash around.
I'm being positive about this whole thing. Totally. In fact I will show my support by using only positive words for my closing.
Yeah, right.
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