PETALING
JAYA: Several banks have come under fire for charging fees when customers make
loan and credit card payments with cash or cheques over the counter or through
deposit machines. At least two other banks have announced they would do the
same from next month.
The
Association of Banks in Malaysia (ABM) says the fees are imposed to “encourage
customers to move from cash to electronic payments” but consumer groups argue
that this practice is unfair to those who do not do their banking via digital
channels.
The fee
for making credit card and loan payments over the counter with cash or cheques
is RM2 per transaction.
A
customer who pays his loan or credit card bill by using cash or cheque deposit
machines is charged 50 sen each time.
Federation
of Malaysian Consumers Associations (Fomca) chief executive officer Datuk Paul
Selvaraj said banks should not penalise consumers who do not know how to
perform Internet banking or who do not trust it.
“We are
shocked that Bank Negara is allowing this to happen.
“People
are already suffering from the high cost of living and it is the role of the
government to reduce the burden and not increase it, ” he told The Star
yesterday.
Paul
noted that the poor and the disadvantaged will be the ones who will be
burdened.
National
Union of Bank Employees (NUBE) secretary J. Solomon agreed that the fees would
affect the lower-income group and people with special needs.
“We are
not against introducing technology in the banking sector.
“We are
only concerned that there is an imbalance now at the expense of consumers,
people with special needs and bank workers, ” he said.
Solomon
noted that banks have shifted from being a service-based industry to fee-based
one.
He
pointed out that with these fees, people have to fork out extra to pay their
loan instalments or credit card bills with cash or cheques.
Solomon
said banking services should be for everyone and not just those who are
comfortable with online banking.
He added
that efforts to encourage the public to use online banking were perhaps a way
for the banks to eventually reduce their workforce.
“In the
last five years, the intake of recruits in the banking sector is minimal and
that is one of the reasons for unemployment among the youth, ” he said.
Among the
banks that are charging these fees are Affin Bank, CIMB Bank, Public Bank and
Standard Chartered.
AmBank
and Maybank have told customers that they will start charging these fees on Oct
1.
However,
Maybank appears to have removed the announcement from its website.
When
announcing the introduction of the fees, the banks have urged customers to make
their loan and credit card payments through other channels such as Internet
banking and automated teller machines (ATMs).
The banks
have also said that they would waive the fees for over-the-counter transactions
made by senior citizens and the disabled.
Muslim
Consumers Association of Malaysia chief activist Datuk Nadzim Johan described
the imposition of the fees as an “unethical way of squeezing money from
consumers”.
“There is
no reason for them to do this. If they instal a new machine to provide
services, then they can go ahead and charge consumers.
“But there
is nothing like that in this case, ” he said.
He called
on Bank Negara and the Finance Ministry to look into the fees as the public is
affected by the practice.
ABM
posted a statement on its website yesterday to explain the reason for the fees.
However,
it was taken down in the evening.
In the
statement, the association said the shift to electronic payments improves the
overall efficiency of the payment system and provides meaningful cost savings
and efficiency to the Malaysian economy.
It added that
electronic payments also increase financial inclusion by extending financial
services to a larger segment of the population, enabling them to enjoy lower
cost of financial services and better means of savings.
To
encourage customers to move from cash to e-payments, ABM said some of its
member banks currently impose fees for cheque and cash payments for credit card
and financing payments performed over the counter (via teller at bank branch)
and via cash deposit machines.
ABM said
these fees may be debited from a customer’s credit card or financing account.
“We
reiterate that senior citizens (aged 65 and above) and the disabled will not be
charged the fees for over-the-counter transactions, ” it said.
On its
website, CIMB Bank said it was charging these fees to encourage its customers
to make payments via electronic platforms.
“Payments
via digital channels are faster, easy and convenient for our customers as they
can be made from anywhere without the need of having to visit a branch, ” it
said.
Article by: The Star
CUSTOMERS PAYING THE PRICE FOR CASHLESS TRANSACTIONS
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