PayNow is a popular way of making transactions as it offers a convenient way to transfer money. Moreover, it is often cost-effective, with many transactions incurring little to no fees.
The platform, however, charges merchants for offering the service. Even so, merchants are not permitted to pass on the charge to their customers.
According to Shin Min Daily News, one minimart in Hougang goes against the aforementioned regulation. At present, they continue to charge customers an extra S$0.30 for PayNow transactions.
Since 1 March this year, updated regulations by The Association of Banks Singapore (ABS) stipulate that merchants cannot charge customers for using PayNow.
Crucially, ABS stressed that the platform is intended to be complimentary for end-consumers.
This approach is similar to other schemes such as NETS and eWallets.
Before the regulations took effect, a Shin Min Daily reporter visited the Hougang minimart after hearing about the S$0.30 additional charge from a Facebook comment. They discovered that the minimart was indeed imposing the extra fee on customers.
When they visited again on Tuesday (5 March), the store did not abide by the new rules.
Source: Shin Min Daily News
Instead, the staff reasoned that they had to pass on the extra charge to customers as the platform charges merchants.
They claimed that the store had to foot a whopping thousand dollars to NETS every month. Thus, it would be unsustainable if they had to shoulder the payment on their own.
The staff added that customers are always informed about the extra fee before they pay, and are not pressured to use PayNow.
Customers expressed frustrations with the extra charges.
24-year-old customer Haza (name transliterated from Chinese) told Shin Min Daily that they would no longer patronise the minimart after learning about the new rules enacted by ABS.
Bai Jia Bao (name transliterated from Chinese), another patron, echoed similar sentiments.
On the day, Bai reportedly purchased a bottle of mineral water for S$0.60. With the S$0.30 charge accounting for half of what they paid for the bottle of water, they felt it was not worth it.
ABS highlighted that merchants may be suspended from using PayNow services if they were found to breach the new regulations.
Also read: S’pore Shop Allegedly Charges S$0.20 For Cashless Transaction, Sparks Debate Over Extra Fee
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Featured image adapted from Shin Min Daily News and NETS. Picture on the right is for illustration purposes only.
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