Wee: New DuitNow transaction fees discriminate against small vendors

 

The new transaction fees which will be incurred to traders who receive payments via the DuitNow QR application starting Nov 1 a discrimination against small traders, said MCA president Wee Ka Siong.

Wee, in a Facebook post this evening, said this is considering that DuitNow QR recipients via Boost, GrabPay, Setel and Touch ’n Go are small businesses and roadside vendors who operate without card payment machines.

He asserted that the new DuitNow rate - as a result of price restructuring introduced by the service - is “wholly unfair” for small entrepreneurs.

“At a time of rising costs of living made worse by the effects of inflation, we should not be making seemingly trivial decisions that come with ripple effects to burden the people and cause more inconvenience.

“This will discourage the growth of cashless payments and more likely, vastly disadvantage the smallest and most vulnerable of Malaysian traders and retailers,” he said.

Yesterday, MalaysiaNow reported that the transaction charges will be effective across all banks starting Nov 1.

The news portal quoted an email from RHB Reflex, saying that the “charges will be deducted from the current or savings accounts on the fifth day of each month”.

It also reported that the amount of fee imposed on the merchant’s account when receiving payment via DuitNow would vary based on the mode of transfer.

Credit and debit cards

Meanwhile, Wee said in the past, there were no charges imposed for DuitNow QR transactions under RM5,000 while there was a fixed fee of RM0.50 incurred for transactions above RM5,000.

However, come Nov 1, Wee highlighted that 0.25 percent would be charged on the transaction amount for debit card payments and a 0.50 percent fee would be applicable if a credit card is used.

“This 0.25 per cent fee is significantly higher compared to the fees for using a local debit card, either Visa or Mastercard.

“For domestic brand debit cards, it is 0.10 percent of the transaction amount or RM0.37 plus 0.001 percent of the transaction value (whichever is lower).

“As for a domestic brand debit card (Visa or Mastercard), it is 0.27 percent of the transaction amount or RM0.63 plus 0.001 per cent of the transaction amount (whichever is lower),” he said.

Wee, who is also a former transport minister, then urged the government to explain how it is planning to prepare for the repercussions that will be faced by Malaysians.

“If all this is true and comes to pass, will it (the government) absorb the costs to small and medium-sized enterprises (SMEs) and small businesses or at this point in time, do away with the interchange fee adjustment under Bank Negara?” Wee asked. - Mkini