Sniip Increasing Fees from 1st April - 0.65% for Debit Cards (was 0%), 0.85% for Prepaid Cards (was 0.5%, inc Crypto.com Cards)

dm02 on 10/03/2022 - 18:57
Last edited 12/03/2022 - 18:27

Starting from 1st April 2022, Sniip is now going to charge a 0.65% fee for debit cards and increasing the Prepaid card fee to 0.85%.

It's a small increase for the prepaid cards but kind of annoying to be honest. What do you guys think?

https://sniip.com/terms-and-conditions/

EDIT: I asked Sniip for the reason behind the fee increase. Their head of marketing emailed me the below:

Thank you for reaching out, great question!

For the past 18 months, Sniip has covered all costs associated with debit card transactions.

Prepaid debit cards incur a processing cost to our business which is greater than standard prepaid cards. There is also significantly more overheads associated with managing these cards.

For example, if a return-of-funds is required to be issued for a prepaid card, this requires considerable internal processing to contact the user, create and apply a custom credit.

The tech infrastructure needed to faciliate this refund process is a cost beyond this, as well as the additional (and rigorous) user verification and fraud monitoring required with prepaid cards.

Unfortunately, as a business, we simply cannot continue to absorb these fees.

At Sniip, we don't charge any app download fees, subscription fees or other administration fees.

We need to charge a fee for debit cards and an increased fee for prepaid cards to cover the cost of enabling payments via a scheme card.

It's important to us that we always offer a free option in the Sniip app for making bill payments.

With the addition of bank accounts as a payment option, we have enabled a way for customers to use Sniip at no cost, whilst lowering the cost imposed on our business.

We haven't removed the ability to pay with your own funds for free - it's just via a bank account now, instead of a debit card.

This means you're still able to access all of Sniip's convenient, cost effective functions and features to make bill payments fast, easy and tailored for your life.

We're driven to continue building bigger and better features and providing the best bill payment service we can for you.

Thank you for taking the time to reach out. I sincerely hope this information helps to answer your question.

Financial

Related Stores

Sniip
Sniip

Comments

  • Neoika on 10/03/2022 - 19:13

    Ignore. No reward, no use.

  • Ash-Say on 10/03/2022 - 19:15

    70% increase is massive!

  • silenthillrocks on 10/03/2022 - 19:30
    +2

    Debit cards increased from 0%. That's a big increase.

  • rektrading on 10/03/2022 - 19:53

    Biden says it's the Russo's fault.

    Prices in 2022 can all be blamed on them.

    • USER DC on 10/03/2022 - 23:39

      Well its not Russia that caused prices in 2022 (if you are referring to fuel prices). That is solely due to economic sanctions IMPOSED by WEST.

  • peter05 on 10/03/2022 - 20:29
    +3

    if their processing fees are less than the vendors themselves, they'll have people using it. if they're higher, people will just pay vendor directly. simple math decision so up to them what fees they charge and whether they're worth it to the end user

    • Neoika on 10/03/2022 - 20:38
      +1

      The only times that I used were AmEx offers, Redeeming Referral credits.

  • dahax77 on 10/03/2022 - 21:53
    +2

    Unfortunate reality of many 'tech' style businesses. No/low fees to draw people in and build up the customer base and make the business look good on paper and for investors - talk up the fact that they have no/low fees as a main selling point for using them and then BAM - fees hit. Spaceship was similar.

    Ultimately it's all about profit for them.

  • USER DC on 10/03/2022 - 23:37
    +1

    we don't charge any app download fees, subscription fees .

    LoL you expect customers to pay you fees downloading app ? pay fees for subscription to an app that is used to do bPay (which all major financial banks in Australia allow to do it for ABSOLUTELY FREE).

    This is honestly insane, No-one would be using Sniip with VISA/MASTERCARD DEBT/CREDIT Cards. Only people to be using Sniip are who buy Discounted Prepaid cards, and those who hold Ammex.

    Sniip is going to another BLOCKBUSTER, I believe.

  • holdenmg on 11/03/2022 - 11:14

    Is the fee for using Debit Cards from 1 April some sort of joke?

    I thought there was some sort of cap (from APRA or the Reserve Bank) on fees not being allowed to be higher than the actual cost they incurred by their bank…

    • peter05 on 11/03/2022 - 11:50

      i believe the actual decision is related to how the actual costs can't be higher than what the business incurs. As they've justified that they need to cover certain overheads due to issues such as payment refunds, or being sent to wrong details etc, the admin presumably could be averaged over the past year of operation. These numbers can be used to justify the additional surcharges to the overarching regulatory body then they should be in the clear.

    • b3au on 16/03/2022 - 11:18

      What makes you think that isn't the actual cost?

  • DaTa on 11/03/2022 - 12:21

    I used sniip for an amex benefit was cool to schedule the payment, but paying a large fee for alittle automation, I can set reminders for that and avoid fees. Ended up closing my account

  • daft009 on 13/03/2022 - 19:47

    Love sniip with my Amex at 1.5% Inc GST.
    There is no better

  • AssociatedMs Sniip @ Sniip on 14/03/2022 - 17:23
    -2

    Hey guys, understand and appreciate all the feedback.

    Please know we are only adjusting debit card fees because we now offer bank accounts as our free way of making a payment using Sniip.

    A debit card draws money from a bank account anyway - it’s just that Visa and MC charge us for the privilege of using their card to draw your money from. (Bank account payments still cost us too, but much less than debit cards).

    And prepaid cards unfortunately incur a lot more admin costs for us as a business, due to the amount of verification needed.

    We want to keep offering Sniip to everyone, no matter how they want to pay.

    I'm sure you would all appreciate that we also need to be a viable business to keep offering our service.

    But you can still use Sniip for free with your bank account and it's super easy to do!

    Again, we don’t like changing processing fees either - it just isn’t easy to provide a payment platform and absorb all the costs to process payments. We couldn’t offer the use of bank accounts previously, but now we can.

    And we know we are doing something people like - we just had our busiest month ever for bill payments in February.

    So USER DC, instead of being compared to Blockbuster, we are more of a Netflix… but without the subscription fees! 😉

    Thanks for all of your support and feedback!

    Ms Sniip 😍

    • daft009 on 14/03/2022 - 21:03

      The only thing missing is EFT payments, not just BPay

  • PeeDee on 06/06/2022 - 09:08

    Hey guys, to earn rewards from Amex via sniip, it's for paying bills using Sniip with Amex right? Not using bank to pay Amex. If it's the latter, I almost went for it incurring fees instead of doing directly from Amex or bank

  • booze101 on 27/09/2022 - 08:10

    As government transactions are not counted toward reward points for most credit cards, is there a way to use Sniip to make these transactions (transactions can occur via ApplePay, not Bpay)?

Login or Join to leave a comment
Login Join