I am using Posbank Everyday card to pay for Groupon, Streetdeal or Deal e-purchases. I get automatic sms alert on the amount charged but I didn't verify with my monthly statement. The only sms alert that has great discrepancy was Streetdeal .... charging me $88 as premium member.
Most credit card companies do not protect customers' interest.
1) The minimum credit amount is not what I wanted. All credit card limit is based on a few times of your salary, which is very high (to me) instead of a low credit limit eg $300. Why customer cannot set a low credit limit? Because .... "a higher credit limit will give customer the freedom you need to make the purchases you want" ... spend more, pay later at high interest rate. Banks are prepared to increase your credit limit, maximise your spending power "To help you achieve greater financial freedom, we are pleased to offer you a credit limit review on your Credit Cards to complement any increase in income you may have had"
• Earning at least S$20,000 but less than S$30,000 - maximum 2 times your monthly income in
• Earning at least S$30,000 but less than S$120,000 - maximum 4 times your monthly income
2) When your card is lost or stolen, if you failed to report the loss on time, whatever amount being swiped is your responsibility.
On 4 September 2009, The Association of Banks in Singapore (ABS) announced new measures aimed at providing clarity and giving credit cardmembers more certainty about their credit card liability for unauthorized transactions.
In line with these measures, all credit card issuing banks in Singapore have agreed to revise their Cardmembers Agreement to reflect a new S$100 liability cap before the loss is reported by cardmembers. However, the liability cap is only applicable to cardmembers who had not acted fraudulently or with negligence or had not failed to report the loss of card in a timely manner.
Bank's current practices, where thorough investigations are conducted to determine responsibility and liability for unauthorized charges, are already aligned with some of the changes announced by ABS.
3) Free sms alert should be available for all transactions. Posbank Everyday card provides free sms alert for whatsoever amount swiped or online purchases that I performed. Other banks either have to exceed a certain spending amount or are charging me for such a service.
4) Usually, there is a grace period of between 20-25 days for you to pay the outstanding balance on your credit card in full, without incurring interest.
If you cannot pay the bill in full, bank advised that you pay the minimum sum by the payment due date and roll over the balance. The minimum amount is usually 3 - 5% of the outstanding balance. Whatever amount you've roll over, the next month, your statement will show what you owe and the finance/late payment/admin charges for that month, eg $30-60.
The interest rate is usually 24% per annum but one bank recently sent me a letter stating its interest rate for not paying in full is 26%.
Banks are very happy to see you spend more or more than what you earned. You'll see a lot of Cash Line service or bank sending you a blank cheque to fill-in.
Let buyers know of extra charge, 1 Oct 2014
After reading Mr Lim Chye Hai's letter ("Be transparent on extra charges"; last Saturday), I realised I had been paying extra for my Groupon purchases too.
Though the amount is not too significant (about 0.8 per cent of the purchase price), I would appreciate it if the relevant authorities could comment on how extra charges could be levied such that consumers are not caught unawares.
I cannot reconcile the fact that when buyers confirm a transaction at a price agreed upon and authorise the sum to be charged to their credit cards, the billed amount by the credit card issuer is a different sum.
Is the bank's extra charge supposed to be an additional cost to the company, in this case, Groupon Singapore? If Groupon Singapore wants to charge an extra amount, should it not be reflected on the payment confirmation page?
Karen Chew Su-Fen (Madam)
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Calls to be open about 'hidden' credit card fees, The Straits Times, 29 Jun 2014
The "hidden" fees that can be slapped on to a credit card transaction have angered consumers and sparked calls for more transparency. Many of these fees are imposed when payments are routed through overseas processors, leaving the card holder with a higher bill than he bargained for.
Oil analyst Tushar Tarun Bansal found such discrepancies in his credit card bills for a couple of transactions with the amount owing higher than what he originally signed for. One instance was when he bought a ticket from Swiss Airlines from Singapore to London and chose to pay in Singapore dollars. The credit card bill was $87 above the initial amount. Mr Bansal, 33, told The Straits Times: "That was surprising. If you buy it on other airlines or for any other thing, what you pay is what you receive on the bill.
"Apparently, the merchant routed that transaction through a non-Singapore entity, (adding) a charge of 0.8 per cent. That was surprising as no information was provided."
Mr Bansal contacted Swissair. It said it could not help as the charges were issued by the bank, which sai, in turn, that it would investigate. He has since received a refund from the airline and was told it was a "gesture of goodwill". But he was troubled that extra charges were not disclosed upfront on credit card statements.
The Consumers Association of Singapore (Case) came across another incident where charges were unclear. Its executive director Seah Seng Choon said a consumer booked a hotel room in Hong Kong for three nights online. The hotel asked the customer to pay HKD1,830 ($297) on check-out but an additional HKD2,013 was charged to his credit card by the hotel when he returned to Singapore.
"He requested for the company to clarify the discrepancy and refund him the difference in pricing," said Mr Seah.
In a joint reply to Mr Bansal's concerns, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) said card issuers generally state that Singapore dollar payments routed through overseas payment processors attract additional service charges.
These additional charges may vary from bank to bank and are usually stated in the list of terms and conditions. Maybank Singapore said there is a 0.8 per cent service fee imposed by the scheme operators, such as Visa or MasterCard, for Singapore dollar payments routed through overseas processors.
It is difficult to find out if a transaction goes through an overseas payment processor but if the bill is the same as the amount paid at the point of sale, then it is safe to assume that it has not. MasterCard and Visa earn transaction fees from issuers like banks and acquirers - firms that process purchases - for the network and the services provided, which are typically passed on to shopkeepers.
Ms Karen Low, head of cards and unsecured lending at Maybank Singapore, added: "Generally, the charge for foreign currency transactions is 2.5 per cent. "For most of Maybank's cards, this comprises an administrative charge of 1.5 per cent by the bank and a 1 per cent charge by the scheme operators."
Ms Wong Chung Yee, OCBC Bank's head of cards, said: "In cases where the card member's local transactions are processed via an overseas payment gateway with the option of being paid in the local or foreign currency, we do not impose any processing fees."
The bank added that the amount on the credit card statement will be the same as the amount at the point of transaction for overseas transactions paid in Singapore dollars. The MAS and ABS added that "more can be done to improve transparency and disclosure to consumers".
In the works: A product highlight sheet on credit cards that will contain key terms of use, including payment hierarchy. This will be released later this year. Mr Bansal said he was deeply dissatisfiedby the MAS and ABS as their reply merely sidesteps the whole issue.
"It's effectively a one-sided thing, that is, putting the onus on the consumer but no talk about what the banks should or can do. It isn't very fair," he said. Case has been contacting banks on behalf of consumers but Mr Seah said it gets little or no response. "It's time the banks look at this, I think there is a clear need for transparency," he added.
Credit card terms: Measures being taken to improve transparency, 22 May 2014
We thank Mr Tushar Tarun Bansal for his feedback on the need for card issuers to disclose the additional fees charged on credit card transactions routed overseas ("Hidden charges in credit card transactions"; last Thursday).
We agree with him that fees and charges relating to credit card transactions must be disclosed to consumers. Under the Association of Banks in Singapore's (ABS) Code of Practice on Credit Cards, a card issuer has to provide every new cardholder with a highlight of its key terms and conditions, which include the fees and charges imposed for foreign currency transactions.
Generally, card issuers in Singapore also state in their terms and conditions that Singapore dollar payments routed through overseas payment processors attract additional service charges, which may vary from bank to bank. Nevertheless, more can be done to improve transparency and disclosure to consumers.
In this regard, the ABS and the banks, in consultation with the Monetary Authority of Singapore, have been working closely to develop, among other initiatives, a Product Highlight Sheet on credit cards for consumers, based on each bank's specific terms and conditions.
The Product Highlight Sheet will contain the key terms of use of the credit card, including the payment grace period, interest and late payment charges, fees for foreign currency transactions and dynamic currency conversion, as well as payment hierarchy.
Mr Bansal's feedback provides useful input on how disclosure standards can be further enhanced, as the industry reviews the specific contents for the Product Highlight Sheet, which is targeted to be introduced by the third quarter of this year.
Merlyn Ee (Ms)
Executive Director (Strategic Planning & Communications)
Monetary Authority of Singapore
Ong-Ang Ai Boon (Mrs)
Director
The Association of Banks in Singapore
