Wednesday, February 10, 2010

November 23, 2009 15:29 PM

Traders Not Allowed To Impose Surcharge On Credit Card Purchase

KUALA LUMPUR, Nov 23 (Bernama) -- Traders, in principle, are not allowed to impose a surcharge on purchase made using credit cards, the Dewan Rakyat was told on Monday.

Second Finance Minister Datuk Ahmad Husni Mohamad Hanadzlah said the restriction was in line with the regulation set by credit card brands such as MasterCard Worldwide and Visa International, and the terms spelled out in the agreement between traders and merchant acquirers.

"Card holders can actually inform the merchant acquirers or credit card issuers on the surcharge by submitting proofs, such as receipts, so that investigation can be carried out.

"Card holders can also choose not to buy from traders who impose the surcharge," he said in reply to Datuk Abdul Rahman Dahlan (BN-Kota Belud) at the Dewan Rakyat on Monday.

Abdul Rahman wanted to know whether traders were allowed to impose a surcharge of two per cent for purchase using credit cards, and described such an act as a "daylight robbery."

To a question from Teo Nie Ching (DAP-Serdang) on the rational for the annual RM50 service tax imposed on principal credit cards, Ahmad Husni said it was to promote prudent spending.

He said many individuals were holding a number of credit cards despite their limited income.

-- BERNAMA

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