Asia: Prohibiting surcharges for credit and debit card payments in Malaysia

Under the Payment Card Reform Framework introduced by Bank Negara Malaysia (BNM), retailers are not allowed to impose surcharges for debit and credit card payments. Banks that provide these payment services for merchants will be monitoring and enforcing this regulation on its partner merchants.

Prior to this, retailers imposed such a surcharge in order to recover the transaction fee i.e merchant discount rate (MDR), a cost that they incur when they accept card payments. However, with the newly introduced measures, Payment Card Reform Framework and the Interoperable Credit Transfer Framework, retailers’ operational cost will be lowered for accepting cards.

RFi Group data shows that 24% and 21% of Malaysian consumers identified extra fee charges as one of the biggest frustrations when making physical and online purchases respectively.

(Malaysia Payments Council, H2 2017) therefore, the ban on charges on consumers uses of cards for payments will alleviate consumers’ current payment cost concerns and thereby, encourage the use of cards for both in-store and online purchases.



Source: H2 2017 Malaysia Payments Council

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