Enforce ruling on surcharges to promote cashless payment

I REFER to the recent statement by Bank Negara Malaysia that retailers can’t impose surcharges for payments using credit and debit cards. This statement, which is in line with its Payment Card Reform Network and the rules of international card schemes such as Visa and Mastercard, will definitely encourage more consumers to move into cashless payment mode.

I strongly welcome this statement on an issue that has been a bane to consumers for quite some time.

A retailer that slaps a surcharge on an item is indeed misleading consumers on the price of the product. In addition, such a practice imposes additional costs on unsuspecting consumers.

Many unscrupulous retailers have taken advantage to impose either “transaction fee”, “processing fee” or “surcharge” to justify their claims to cover operational costs charged by the banks or credit card companies. This is indeed daylight robbery!

I believe retailers have made a handsome profit over the years.

An NGO (Malaysian Digital Economy Consumer Association) claimed that a budget airline in Malaysia could be making an extra RM80mil annually from travellers based on a minimum “processing fee” of RM4 per booking.

Consumers hope that Bank Negara and other relevant agencies will act swiftly to enforce this ruling. For a start, they should focus their enforcement on travel agencies, electronic outlets as well as airlines.

Another aspect that needs Bank Negara’s attention is the minimal purchase amount imposed on consumers who opt to use a credit or debit card.

This practice should be eradicated once and for all.

As such, Bank Negara and other relevant agencies should come down hard on the unscrupulous retailers.

If necessary, Bank Negara should remove the debit and credit card facilities provided to these retailers. This will send a strong message to other errant retailers not to flout the existing regulations.