MyPaper - Visa set to disembark from every S'pore taxi
VISA cards will no longer be
accepted in any Singapore taxi from next month after SMRT, the last
taxi operator to have the credit card payment option, withdrew it
from its cabs.
Visa is phasing out the
service on SMRT's cabs to uphold its "no surcharge protection
policy".
The change, to take effect
next Thursday, is the latest in a longstanding wrangle between Visa
and cab companies, which do not want to budge on their 10 per cent
levy for credit card payments.
ComfortDelGro, TransCab and
Prime stopped accepting Visa cards in July, after discussions
failed to reach a desired outcome. Premier also ceased the payment
option last month.
Payment through other credit
and charge cards continues to attract a 10 per cent fee.
Visa told My Paper yesterday
that its operating rules prohibit surcharging as this penalises
card holders.
Seah Seng Choon, executive
director of the Consumers Association of Singapore (Case), said the
latest news was "disappointing" and "a step backwards" in
Singapore's move towards more cashless transactions.
"Right now, both parties are
looking at it from a cost point of view," said Mr Seah, who hopes
cab companies and Visa can come to the table again to
negotiate.
Cab companies said in reports
last year that the surcharges are to cover a fee that they have to
pay banks for every card transaction - estimated to be between 2
and 3 per cent.
Besides bank fees, there are
also telco charges and costs incurred in investing in and
maintaining the cashless payment terminals and services,
ComfortDelGro spokesman Tammy Tan said then.
The system involved a
"sizeable investment" of about $10 million, Ms Tan
added.
It is understood that Visa and
SMRT were in discussions to come up with a smaller surcharge fee
late last year but they were unable to reach an agreement. "The
decision to stop Visa acceptance is always a last option," said
Visa.
SMRT's director of media and
marketing communications, Alina Boey, said notices will be put up
in its taxis to inform customers of the changes. "We apologise for
the inconvenience caused," she added.
Payment firm MasterCard said
it "does not encourage surcharging" but it recognises the need to
"balance giving consumers payment choices and managing the cost of
card acceptance".
