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[h=2]<H2 class=art-PostHeader>ComfortDelGro refunds 10% Visa surcharge to commuter</H2>
March 31st, 2013 |
Author: Editorial
On 15 March 2013, the Straits Times (ST) reported that commuters of ComfortDelGro taxis would no longer be able to pay their cab fares with Visa (‘Cab firm and Visa in surcharge stand-off’).
Commuters will no longer be able to use their Visa card to pay for cab rides in ComfortDelGro taxi-cabs by June 2013, unless ComfortDelGro is willing to remove its surcharge.
At present, ComfortDelGro levies a 10% surcharge on commuters who use their Visa card to pay for cab rides. Visa International said that this is a breach of contract terms between Visa and ComfortDelGro.
Both sides have been trying to resolve the issue for the past three years but to no avail. ComfortDelGro has stood its ground on levying the surcharge. Finally, Visa International got fed up and issued an ultimatum to ComfortDelGro last month to stop the surcharge or Visa will terminate its contract with ComfortDelGro.
ST reported that Visa International said ComfortDelGro has steadfastly refused to budge on the issue, and had instead told Visa that it would stop accepting Visa cards in its cabs by May or early June.
Visa International said removing the surcharges will lower costs for consumers and encourage more people to go cashless.
The Consumers Association of Singapore (CASE) is behind Visa International in this matter and has urged ComfortDelGro to explain why it had imposed such a hefty surcharge in the first place as typically, most merchants pay banks a 3-5% fee per credit card transaction.
After ST published this news, a reader contacted TR Emeritus (TRE) expressing his disgust with the behaviour of ComfortDelGro.
The reader said, “How did they arrive at the 10%? Nowhere in the world will anyone levy a 10% surcharge for the use of a credit card to make payment. This is daylight robbery!”
He added, “To add insult to injury, they actually have the cheek to charge another 7% GST on top of the 10% surcharge!”
He noted that ComfortDelGro did not put up any signs in the cab to warn about the 10% surcharge for using credit cards. “This is a breach of contract between the commuter and ComfortDelGro. They are not being transparent over the whole issue,” he explained.
He said sarcastically, “In this case, why not levy a 100% surcharge – even better! ComfortDelGro can immediately double its revenue.”
In fact, the reader was so angry that he called up ComfortDelGro to give them a piece of his mind. In the end, his “yelling” worked and ComfortDelGro actually refunded him the 10% surcharge plus the GST levy on top of the surcharge.
TRE has verified the original copies of the receipt and cheque refund to confirm his story.
The reader added, “If Visa or any aggrieved commuters who have been shortchanged, wish to to take appropriate legal action against ComfordDelgro on this matter, I’m prepared to stand as witness for all aggrieved parties or Visa. I have kept the original copies of receipt and cheque refund as evidence.”
“I’m just angry with all kinds of bullying that have been going on in this country with no transparency and accountability at all. It is always the consumers who have to bear the blunt of such increase in cost.”
.
Editor’s note: TRE would be happy to put anyone who is serious about taking legal action against ComfordDelgro in touch with the reader.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
[/h]
Commuters will no longer be able to use their Visa card to pay for cab rides in ComfortDelGro taxi-cabs by June 2013, unless ComfortDelGro is willing to remove its surcharge.
At present, ComfortDelGro levies a 10% surcharge on commuters who use their Visa card to pay for cab rides. Visa International said that this is a breach of contract terms between Visa and ComfortDelGro.
Both sides have been trying to resolve the issue for the past three years but to no avail. ComfortDelGro has stood its ground on levying the surcharge. Finally, Visa International got fed up and issued an ultimatum to ComfortDelGro last month to stop the surcharge or Visa will terminate its contract with ComfortDelGro.
ST reported that Visa International said ComfortDelGro has steadfastly refused to budge on the issue, and had instead told Visa that it would stop accepting Visa cards in its cabs by May or early June.
Visa International said removing the surcharges will lower costs for consumers and encourage more people to go cashless.
The Consumers Association of Singapore (CASE) is behind Visa International in this matter and has urged ComfortDelGro to explain why it had imposed such a hefty surcharge in the first place as typically, most merchants pay banks a 3-5% fee per credit card transaction.
After ST published this news, a reader contacted TR Emeritus (TRE) expressing his disgust with the behaviour of ComfortDelGro.
The reader said, “How did they arrive at the 10%? Nowhere in the world will anyone levy a 10% surcharge for the use of a credit card to make payment. This is daylight robbery!”
He added, “To add insult to injury, they actually have the cheek to charge another 7% GST on top of the 10% surcharge!”
He noted that ComfortDelGro did not put up any signs in the cab to warn about the 10% surcharge for using credit cards. “This is a breach of contract between the commuter and ComfortDelGro. They are not being transparent over the whole issue,” he explained.
He said sarcastically, “In this case, why not levy a 100% surcharge – even better! ComfortDelGro can immediately double its revenue.”
In fact, the reader was so angry that he called up ComfortDelGro to give them a piece of his mind. In the end, his “yelling” worked and ComfortDelGro actually refunded him the 10% surcharge plus the GST levy on top of the surcharge.
TRE has verified the original copies of the receipt and cheque refund to confirm his story.
The reader added, “If Visa or any aggrieved commuters who have been shortchanged, wish to to take appropriate legal action against ComfordDelgro on this matter, I’m prepared to stand as witness for all aggrieved parties or Visa. I have kept the original copies of receipt and cheque refund as evidence.”
“I’m just angry with all kinds of bullying that have been going on in this country with no transparency and accountability at all. It is always the consumers who have to bear the blunt of such increase in cost.”
.
Editor’s note: TRE would be happy to put anyone who is serious about taking legal action against ComfordDelgro in touch with the reader.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
[/h]
