Settle ERP charges through credit card bills

[User12343]

ST 30/3

 

MOTORISTS will soon not have to worry about that dreaded beeping sound which indicates low or insufficient funds in their CashCard.

 

In fact, they will no longer even need a CashCard in their car to make ERP payments.

 

By around mid-year, a new service will allow drivers to pay electronic road pricing (ERP) charges when they settle their monthly credit card bill.

 

This development was part of the Land Transport Masterplan, which Transport Minister Raymond Lim launched yesterday.

 

'For motorists who wish to do away with the need to carry and top up stored-value cards, the ERP payment system will be further enhanced to allow alternative payment modes, such as credit card payment which will be implemented by mid-2008,' read the blueprint for commuter-friendly transport till 2020.

 

The Land Transport Authority did not have any details on the plan.

 

However, it is hoped the new system will reduce the 30,000 or so violations chalked up each month by motorists who pass gantries without enough funds.

 

Banks interviewed said they are ready to jump in to provide this new credit card service. Maybank head of corporate communications Ms Priscilla Loke said the bank is keen to offer the service.

 

United Overseas Bank's head of cards and payment products Ms Gan Ai Im said: 'Card members will find it very convenient for payment of their ERP charges to be made via their credit card.'

 

Motorists also look forward to this.

 

Many have been fined for running too low in CashCard funds, while some have even had near accidents fumbling to put a CashCard into the reader at the last minute.

 

Dentist Andre Lam, 50, said it is an excellent move.

 

'I carry three CashCards with me now, just in case I forget one,' he said.

 

School principal Charles Surin, 46, said it will be convenient.

 

'More important, it will reduce global warming, as less non-biodegradable plastics will be used to make CashCards,' he added.

 

Others pointed out that not having to keep a CashCard in the car will deter smash-and-grab thefts in cars.

 

The only hindrance to cardless motoring is in carparks. Industry sources said those which employ ERP payment technology may still require drivers to insert a CashCard.

[Nhyone]

To be truly useful, this must apply to all gantries, such as carpark ones, otherwise we still need a cashcard.

 

I'm surprised they expect to roll out the service mid-year -- two months away -- and LTA doesn't have any details on it?

[Guyver]

Those building management who spent the $$ to upgrade their system to wireless cashcard detection type will ....

[Apollo]

he said so much but pretend abt the fact cashcard cost cars the most becos of broken windscreen and this is also one factor to rising premium.

 

why dun he just get all the stoopig IU replaced instead?

[User12343]

how to replace IU? what are the associated costs? are they willing to pay?

[Kklee]

I won't worry about it...cashcard is accessible for all while not everyone will have & will use credit cards e.g. company vehicles, buses, certain motorists. CC is definitely more convenient, but will the refund of wrong or incorrect deductions less of a hassle? Take money easy, return money have to wait & wait.

 

This announcement make it seems like credit cards are easily accessible for all.

 

On the comments made regarding reducing global warming, my take is that probably more trees would be lost when including the ERP charges in CC monthly statements unless everything is online.

Edited March 31, 2008 by Kklee

[David]

This will only add up to your credit debt, please remember that there's a average of 24% p.a. for late payment. I have heard that paying road toll thru cc is already in plave in some cities like Melbourne.

[Boyboy]

debit card can ornot?

 

otherwise i must tumpang on my lao peh's CC liao

 

will be good if it means that we dun need to insert cash card at all. for EPS carparks, i don't mind inserting cash card. this may be an interim solution but it's better than no action being taken.

 

i'm not a credit card user ($$ no enough, and not on supp card) but from what i understand, if pay bill in full every month, no interest charged right? ERP fees can't be that much in comparison to other big ticket items .

 

edit: so this system requires insertion of credit card? or no need any card? insertion of credit card will be even more unsafe than cash card imho

Edited March 31, 2008 by Boyboy

[Auron]

no need to be so happy lar...

no details yet.

 

what i think they are doing. its quite simple.

 

take your IU number.

register it at some LTA/bank website.

link your chosen credit card number to the IU number.

in this way, no need to insert anything to the IU.

if link successfully, LTA/bank will inform you.

then u can start to drive thru ERP gantry without any cash card.

 

u pass thru ERP gantry, i think still got beep.

the LTA will then charge accordingly and then send the bill to the bank.

bank collect money and pay LTA back.

 

All these convenience will come at a cost.

now the ERP $$$ goes straight to the LTA pocket.

if implement the above, bank will take a certain % and cc company will take a certain %. then LTA still have to sent bill to bank and bank have to pass $$$ back to LTA.

 

so expect service charge for every transaction. LTA will have to charge extra to cover the $$$ paid to bank and cc company and earn itself some extra % also.

 

currently i think cc transaction carry a 2-3% charge. so i think we would be lucky if LTA intend to charge additional 5-10% if you want to settle ERP charges thru cc. given our greedy and $$$ faced gahmen, i think they are going to charge 10% additional.

 

of course, you still cannot throw away your cash card because only LTA have arrangement with bank. those ERP carpark does not have arrangement with bank, so still need to retain your cash card for such purpose.

[Auron]

most probably debit card cannot. debit card need to access to your banking account for immediate deduction and such online transaction will be quite costly. but of course, they can say ensure that you have $$$ in the bank account or they will slap you with $20 penalty for every transaction.

[Linus]

this is not new. in malaysia, some banks have given their customers a small card for payment of "touch N go" toll charges. once the card's balance drop down to certain level, it will automatically top-up by crediting to the CC bill.

 

customer can opt how much is the top-up value each time.

 

the physical procedures are not the same as in our ERP system (thru scanning) but i think they are adopting the same principles behind the scene of ensuring of enough funds in the cashcards.

 

if we are to discuss about late CC payments, then the discussion would be neverending.

[User12343]

then simple lor, dun drive. scrap the car, and the parf+coe rebate converts to 100% cash no more monthly instalments, wallet sure fatter.

Edited March 31, 2008 by User12343

[User12343]

agreed it is not new, but why the gahment took so long to think about implementing it???

[Rickster]

I think its only a matter of time before the carparks will upgrade also. Give them 2 years. I belive most carparks will soon be able to accept credit card payments.

[Rickster]

I won't worry about it...cashcard is accessible for all while not everyone will have & will use credit cards e.g. company vehicles, buses, certain motorists. CC is definitely more convenient, but will the refund of wrong or incorrect deductions less of a hassle? Take money easy, return money have to wait & wait.

 

This announcement make it seems like credit cards are easily accessible for all.

 

On the comments made regarding reducing global warming, my take is that probably more trees would be lost when including the ERP charges in CC monthly statements unless everything is online.

 

Now credit cards is alrdy very accessible to anyone. As long as a person is earning at least 2.3K monthly (equals to 30K/annum inclusive of 1 month AWS), they will be able to get a card liao.

 

Not to forget, many parents are alrdy giving their children who are in tertiary schools sup-cards. To top it all, even tertiary students can apply for a credit card direct w/o any need of income proof!

[Sony]

This will only add up to your credit debt, please remember that there's a average of 24% p.a. for late payment. I have heard that paying road toll thru cc is already in plave in some cities like Melbourne.

 

 

No one ask the card holder to roll over debts..

 

but if people cannot think, then the 24% charges is valid lesson fee.

[Sony]

most probably debit card cannot. debit card need to access to your banking account for immediate deduction and such online transaction will be quite costly. but of course, they can say ensure that you have $$$ in the bank account or they will slap you with $20 penalty for every transaction.

 

 

maybe can. they might set up a booth and let people drive in, slot in card, print transaction slip and let them sign

[Boyboy]

most probably debit card cannot. debit card need to access to your banking account for immediate deduction and such online transaction will be quite costly. but of course, they can say ensure that you have $$$ in the bank account or they will slap you with $20 penalty for every transaction.

 

for the convenience, i won't mind at all, unless got surcharge

 

but the surcharge can be taken as a "security fee", i can throw away my cash card cover and no fear of gettig fined for not having cash card inserted.