DPM Gan Kim Yong responds to question about Singapore Pools’ S$0.10 PayNow surcharge
Even though merchants are not allowed to impose a surcharge for PayNow payments, Singapore Pools has reportedly been charging customers a S$0.10 fee for PayNow transactions.
Deputy Prime Minister (DPM) Gan Kim Yong, who is also the Chairman of the Monetary Authority of Singapore (MAS), revealed during a written parliamentary response that the Association of Banks in Singapore (ABS) is engaging Singapore Pools regarding the practice.
Singapore Pools, however, said it has existing contracts with its partner banks that allow for the recovery of processing costs for payments.
ABS aware of Singapore Pools’ PayNow surcharge & engaging company to address practice
Potong Pasir Member of Parliament (MP) Alex Yeo had asked whether any entities, including Singapore Pools, were exempted from rules prohibiting them from imposing surcharges on PayNow transactions.
In a written reply, DPM Gan said that over 300,000 businesses in Singapore currently use PayNow as a safe and low-cost payment method.
However, ABS, which owns the PayNow scheme, has rules prohibiting merchants from imposing a surcharge on customers who use PayNow.
While major retail banks currently waive transaction fees for payments received from consumers, merchants may be charged a small fee if they opt for additional services, such as payment notifications.
As for Singapore Pools, Mr Gan said ABS is aware of the surcharge that the lottery company currently charges.
The association, through the PayNow banks which have contractual relationships with Singapore Pools, has also been engaging the lottery company to address the practice.
Singapore Pools says surcharge is not a new practice
In response to MS News‘ queries, a Singapore Pools spokesperson said the company has “existing contracts with its (our) partner banks that allow for the recovery of processing costs for payment transactions”.
The spokesperson also said the S$0.10 surcharge is “not a new practice” and that it has been around before ABS implemented rules prohibiting merchants from imposing surcharges on PayNow payments.
Additionally, the Singapore Pools spokesperson told The Straits Times that all fees are “disclosed upfront to customers” before they proceed with a transaction. This is the case on the Singapore Pools website and app.
Also read: Elderly men seen climbing over road divider in Farrer Park to reach Singapore Pools outlet
Elderly men seen climbing over road divider in Farrer Park to reach Singapore Pools outlet
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