Credit Card Tax for 2010 is to stay no doubt about it. Credit card industry as a whole has come to a consensus that this tax will be borne by the cardholders and not the banks. Association of banks also confirmed on the tax payment date.
Now, banks in Malaysia are strategising to help customers pay the credit card tax by hoping that they can retain their customers.
Most banks are willing to allow customers to utilise their reward points collected to pay the tax charge. However, some banks said that consumers could easily offset the tax with the many cash rebates offered with their credit cards.
For banks that agree to use points, how much are needed?
The table below shows how much points that you need for different banks
The credit cards tax is to stay & no changes will be done. It is will be according to the budget accouncement last October as it was approved in the parliment recently. Principal credit or charge cards holder have to pay RM50 per card while supplement card holder have to pay RM25 per card.
Starting 2010, new credit card applicants will have to pay the RM50 service tax upfront when they issued with new credit or charge cards.
For existing card holders, the charge will be imposed on the anniversary date of cards. The service tax will be pay through their issuing banks. For example, if the card’s anniversary date is in April, then you pay the tax in starting April 2010 & every subsequent anniversary date.
Public Bank recently relaunch their PB Smart Rebate II promotion which introduced in October 2009 and rename it to PB REAL Cash Back Promotion. They are still offering 10% Cash Rebate but in much better terms this time. Its similar to their first PB Smart Rebate I promotion in June 2009. I believe Public Bank is trying to retain their credit card holders by providing them with better promotion. Or else they may cancel their cards due to newly introduced tax.
Under this promotion, Public Bank credit card holder who made their spending either local or overseas will entitle 8% cash rebate on retail transactions. Additional 2% cash rebate will be awarded if the transaction made overseas, sign up for new Zero Interest Instalment Plan (ZIPP) and new balance transfer. The promotion is valid from 1st December 2009 to 31st March 2010.
Hong Leong Bank recently re-launched Essential Credit Card which they firstly introduced a few years back. However, Hong Leong Bank stopped issuing it until the recent re-launched.
Hong Leong Essential Credit Card combines the best features of every credit card so you can enjoy the best of both worlds-the benefits of having multiple cards and the convenience of carrying just one.
The main benefit of Essential Credit Card are 1% unlimited cash back, low fee of 2% on cash advance, higher credit limit and Free for life.
Credit-card users who are told to pay extra if they use their cards instead of cash should be aware that merchants are not allowed to impose merchant fees on users as stipulated in the card associations’ operating regulations.
Under the Bank Negara credit-card guidelines, banks are required to display prominently on the credit-card application forms their fees and charges table. banks are also required to print on the monthly billing statements to credit-card holders information on the various charges imposed on the oustanding balances and method of computation of such charges.