Govt can’t stop firms charging fees for cashless payment

THE Government has no authority to allow a fee exemption for consumers opting for cashless payment as the decision is with the service providers, the Finance Ministry said. It said several service providers were already offering discounts to consumers who used the payment method.

The ministry said with e-payments becoming popular due to its convenience, many service providers had started giving fee exemptions to their customers. It said this was made possible through the e-Payment Incentive Fund (ePIF), a scheme initiated by banks to encourage cashless payment.

The ministry said banking institutions had benefited from ePIF, with RM105.8mil used between 2015 and 2016 to give discounts and fee exemptions to consumers who used this method. The fee exemptions, it added, covered Internet banking, security token fees, interbank GIRO and instant transfer.

The ministry said this in a written reply to Lim Lip Eng (DAP-Segambut), who asked why payments via Touch ‘n Go and the Internet were not given discounts to promote cashless payment.

It said consumers who used Touch ‘n Go Plusmiles cards to pay tolls at PLUS Highways enjoyed a 5% rebate, and those using the card to pay for transportation by KTM and Syarikat Rapid enjoyed discounts up to 20%.

Lim told reporters later that the Government should do more to encourage cashless payment, especially via Touch ‘n Go cards.

He said imposing fees on cashless payments has irked consumers, who had to pay a 10% surcharge on parking fees via the Touch ‘n Go card.