Skip to main content

Advertisement

Advertisement

EZ-Link to manage funds in scheme to protect spa clients

SINGAPORE — Instead of making lump-sum payments to spa companies for prepaid packages, customers can now use EZ-Link as the intermediary, so there is no risk of losing money even if the merchants close down.

SINGAPORE — Instead of making lump-sum payments to spa companies for prepaid packages, customers can now use EZ-Link as the intermediary, so there is no risk of losing money even if the merchants close down.

Under the new TRUST programme, which is supported and endorsed by the consumer watchdog, EZ-Link will serve as the custodian of funds and disburse payments to spa companies every time a customer completes a session.

Consumers will each be given a card they can use at participating merchants to redeem prepaid packages and view their account balances, transaction history and expiry dates of packages.

They can also temporarily suspend or reactivate their cards, which can be used to store multiple prepaid packages with various merchants.

The move comes after a host of companies in the spa and wellness industry went belly up several years ago, causing customers to lose the value of their prepaid packages.

In the shake-up following the episode, the Consumers Association of Singapore (CASE) introduced accreditation for the industry and started an insurance protection scheme for accredited firms, which have secured refunds for consumers in the event of closure.

The TRUST programme would allow more small players to get accredited — one of the criteria to be allowed to sell prepaid packages.

Previously, companies would need to buy insurance plans to protect their customers in order to be accredited, but the new arrangement with EZ-Link negates that need.

There are now around 500 CaseTrust-accredited spa and wellness outlets. Consumers stand to benefit too. The scheme offers them the option of paying for prepaid packages in instalments.

Speaking at the launch of the programme yesterday, CASE executive director Mr Seah Seng Choon said although the Spa and Wellness Association of Singapore encourages its members to take up insurance plans to protect their customers, this might not always be sufficient.

“With the implementation of the TRUST programme, consumers will have an additional form of protection (with regard to) the purchase of prepaid packages, thus giving them greater assurance and ease of mind when patronising a spa and wellness business,” he said. “This will boost industry standards and ultimately benefit both the consumers and business operators.”

EZ-Link also has “substantial experience in managing floating funds”, he added. A wholly owned subsidiary of the Land Transport Authority, EZ-Link is regulated by the Monetary Authority of Singapore and the Public Transport Council.

Ms Priya Singh, 29, a childcare teacher, likes the new programme. “I have had a bad run-in with a massage parlour in Toa Payoh that closed down, but I did not seek any returns as I did not think it was possible. With this new scheme, I think I may give massage parlours another shot.”

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.