Nets collects a huge revenue in commission on a tier basis from consumers who use Nets. Now it is intended to raise the commission from retailers on Nets transactions, more retailers will probably decline such transactions as their profit margin on some consumer products, due to competitiveness, is only about 5 to 7 per cent. When the Nets commission is raised to 3 per cent, they would rather collect cash.

On the side of the consumer, if I carry a bank card with Nets facilities and a credit card, I will prefer to use the credit card as Nets means instant payment but credit cards are delayed payment.

When the Government first encouraged the public to become a cashless society, such high Nets charges were not foreseen and retailers welcomed Nets with open arms. Now consumers use Nets prolifically, Nets resorts to collecting more revenue by increasing its commission rates.

As it is a lot of trade with small margins (like travel agencies), more retailers will refuse to entertain Nets and insist on cash. As Nets is co-owned by several banks, it appears the banks are gaining at the expense of the public.

Tham Siong Tuck