Outrage Over Extra Transaction Fees For Loan And Credit Card Payments

Outrage Over Extra Transaction Fees For Loan And Credit Card Payments

In a statement released yesterday, the Association of Banks in Malaysia (ABM) said that banks will cease charging fees from customers who make loan and credit card payments with cash or cheques over the counter and through deposit machines.

This is in response to several organisations and parties that have expressed their ‘shock’ to Bank Negara Malaysia’s move that allowed banks in Malaysia to charge fees for over-the-counter transactions.

Previously, ABM explained that the charging of fees for over-the-counter transactions was to encourage customers to opt for online banking and to improve the efficiency of the payment system. Those exempted from the transaction fees were senior citizens (aged 65 and above) and the disabled.

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Now, walk-in customers will be directed to free and convenient alternatives to conduct banking transactions such as via automated teller machines.

The transaction fees imposed:

  • RM2 for payments done over the counter
  • 50 for payments through cash or cheque deposit machines

Federation of Malaysian Consumers Associations (Fomca) Chief Executive Officer Datuk Paul Selvaraj voiced out that the move is unfair especially for those who are not used to online banking and those who do not trust it.

The poor and disadvantaged were the ones affected through this move on top of high cost of living.

What’s worse, according to PSM’s deputy chairperson S Arutchelvan, many Malaysians were unaware of this move by local banks.

Banks that had previously imposed charges:

  • Affin Bank
  • CIMB Bank
  • Public Bank

Meanwhile, Maybank and Ambank were to start charging from Oct 1.

[Source 1,2,3,4]

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