IRATE bank card customers have been shut out of using snazzy new AXS stations around the country because they have the wrong plastic.

Only holders of DBS or POSB cards can use the new machines at present, forcing other card customers to stick with the older, stodgier stations.

The new machines, which boast several enhanced features including the ability to process transactions far faster, are being tested out by AXS InfoComm, a firm majority-owned by DBS.

Card users from other banks may eventually gain access to the new stations but only if their banks sign up to the system.

There is some doubt that they will, as a more attractive service from new AXS stations could affect income from Nets transactions, a bumper earner for the three local banks - DBS, UOB and OCBC.

While the banks decide on strategy, card users like civil servant Goh Liyi are put off.

Ms Goh, 27, wanted to settle her credit card bill at an AXS station opposite her home on West Coast Road.

It is usually a breeze: she uses her United Overseas Bank (UOB) ATM card and the transaction goes through in seconds. But, this time, the plastic was rejected.

'I was shocked,' said Ms Goh. 'The screen showed I had to pay using my POSB or DBS card. I found it very odd.'

The trial began in September last year to test the new system, known as D-Pay (or Direct-Pay).

It allows 'direct connection' to various banks and financial institutions like Visa, MasterCard and Diners, so funds can be 'debited directly' from a customer's bank account.

Transactions at the older AXS terminals are conducted via Nets, the payments service provided by the Network for Electronic Transfers (Singapore). That is why the older machines accept a number of bank ATM cards, including those from UOB, OCBC and Standard Chartered.

Unlike the older models, the new machines also let you top up ez-link cards and customers will soon be able to apply to pay by Giro via the terminals.

D-Pay enabled kiosks - you can spot them by the red numeric keyboard and faceplate and the D-Pay logo - will shorten transaction times.

Bills and other transactions can be settled in only two to three seconds, compared with around 15 seconds on the older machines. A total of 113 AXS stations in the 560-strong network are D-Pay enabled and are located all over the island.

About a million transactions a month are made at AXS stations, with about 80per cent done using DBS or POSB ATM cards. The network processed about $4billion in total payments in 2007. Last year's numbers are still being audited.

AXS chief business officer Chin Mun Chung said the new stations will eventually accept all ATM cards from participating banks.

'Other banks that have also shown an interest include Citibank, HSBC and Maybank. We are still in discussions with other banks on this,' said Mr Chin.

Citibank Singapore's head of liabilities product management, Mr Robin Chua, said the bank had signed up for D-Pay and was 'looking to launch it within the next few months'.

Officially, OCBC and UOB have not ruled out signing up, but some local bankers say the duo will join only if customer demand is significant.

Cost is unlikely to be the deterrent, as D-Pay set-up expenses are low. It is more a case of business strategy, as income from Nets, which is owned by all three local banks, could be hit.

AXS pays Nets a fee for each transaction. At present most AXS transactions are made using Nets, with fees of several millions of dollars a year going to Nets.

If the local banks join the new AXS stations - and if Nets is not asked by AXS to sign up - transactions will be debited directly from a user's card, bypassing Nets. While the local banks will reap some income, as AXS will pay the banks for every transaction made, they will lose out as Nets shareholders.

'If you're OCBC or UOB, you have to consider it from a bank's point of view, from a Nets' point of view, as well as what your customers really want,' a local banker said.

gabrielc@sph.com.sg