Do You Pay More to Use NETS On a Credit Card?

If you use NETS on your credit card, will you be charged an extra fee like a cash advance? Find out here.

If you look at the back of your credit card, there might be a little  red and white logo with the word “NETS” on it. Most people don’t care much for it, or their card is from a bank that isn’t part of the exclusive NETS circle.

For those who are aware of NETS payments, you may have used it on your ATM or debit card--but on a credit card? Will it charge a percentage, like cash advances (also known as withdrawing money from your credit card) do?

Wait, What’s This NETS Thing?

Unfamiliarity with NETS is almost telling that you’re quite new to the payment methods in Singapore. When you’re running low on cash, you use your ATM or debit card to make a payment by keying a PIN in a terminal instead of running off to the nearest ATM to withdraw cash. Most restaurants, retailers and major merchants have NETS as a payment option.

You can also use it to pay your bills and top-up your CashCard. Some websites such as Tigerair and Zalora allow you to pay for your purchases using eNETS, which is a form of direct debiting. It might even cost a lower fee than using a credit card.

If your ATM, debit or credit card has a NETS logo at the back, your card will be accepted by all NETS terminals.

Does It Charge a Fee on a Credit Card?

NETS work as a sort of debit payment, so what is it doing on credit cards? Does it work similarly to a cash advance?

You might be taking money directly out of your account to make a payment, an action similar to that of a cash advance, but it isn’t anything like a cash advance. Simply put, paying by NETS on your credit card isn’t “borrowing” money from the bank at all.

So you wouldn’t be charged any additional fees for using NETS on your credit card.

How Does NETS Work on a Credit Card?

NETS takes money directly out of your savings or current account. This means that if you want to use NETS on your credit card, you will first have to link it to a savings or current account.

This is exactly why you wouldn’t be charged a cash advance fee.

You will need to link an account from the same bank as the bank that issued you the credit card. For example, if you have a DBS credit card, you will need to link a DBS account to your credit card in order to activate the NETS function. You wouldn’t be able, however, to link a Citibank account to a DBS credit card for this purpose.

So if you’re not willing to carry around a few cards, why not consider consolidating your NETS card and credit card in one?

How to Activate NETS on Your Credit Card

Send in a request to your bank to have them set up an account if you don’t already have one, and link this account to your credit card. It normally takes about one to two weeks for the bank to link a savings or current account to your credit card, after which the NETS should be ready to use.

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