Network for Electronic Transfers
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The Network for Electronic Transfers (Singapore) (Abbreviation: NETS; simplified Chinese: 电子转帐体系) is a company in Singapore, and also refers to its common method of point-of-sale cashless transaction in Singapore. With an ATM card and a Personal Identification Number (PIN), which is a 4 to 6-digit numeric code in Singapore (depending on card type and bank), users can make payment at most stores that support NETS, top-up their cashcard, pay their phone bills at some machines, and other transactions. In order to use the NETS point-of-sale payment system, you need an ATM card from either DBS/POSB, OCBC, UOB or StanChart. Customers of foreign banks such as HSBC, Maybank & other ATM card cannot make NETS purchases.
[edit] Technical details
In order to support NETS payment, a store must register a dial-up NETS account with a service provider. The store will then have to get the necessary equipment, including a NETS terminal device, which will be used by the customers to enter their PIN, and a registered phone line. During a typical transaction, a member of staff will need to enter the account number of the store and the amount to be deducted from the customer's account (and transferred to the store account). After that, the staff member will need to swipe the customer's ATM card in the slot provided by the device. The terminal device will then dial an access number to communicate with the remote NETS server. After verification, the NETS server will require a PIN to be entered by the customer using the terminal device. If all information is correct, the corresponding amount will be deducted from the customer's account and transferred to the bank account of the store. Finally, the receipt is printed, indicating that the transaction has been successful.
Most NETS terminal devices also support payment by Cashcard. If this is the case, the cashcard needs to be inserted and transaction will be done locally. There is no need to access the remote server, as for the cashcard, the balance is stored in the chip (and not on the server). The terminal device will read the balance in the Cashcard, deduct the corresponding amount from the Cashcard and store the transaction details in a log file. Usually after a period of time (for example, every month), a staff from the bank where the store has registered the NETS service will come and check the log file generated by the device. After all verifications, the total amount stored in the log file will be transferred to the store's account.
[edit] Typical charges
There is no additional charge on the customers, however the store using the system will be charged if the customer is using his ATM card. This is to cover the telephone access fees. Depending on the service provider, the store will be charged an additional fee per transaction (including failed transactions) or pay a monthly subscription fee. As such, to minimize the additional costs incurred during NETS transactions, most stores set a minimum value (typically SGD5.00) at which the customers are able to use NETS. Otherwise, they will have to pay with cash, or by using a Cashcard.
As of 1st July 2007, NETS has increased their merchant charges from 0.35-0.55% to 1.5-1.8%, a rates comparable with that of credit cards. With this increase merchants have started to offset the increase by increases prices, or incurring additional costs when NETS is now used.
