It is Illegal for Merchants to Impose Fees on Credit Cards Usage

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.

A comparison of rates charged by banks can be obtained from the website.

Banks would act on complaints from cardholders on “unacceptable practices by merchants’’. Cardholders should not accept any imposition of surchange, report such incident to the bank or go to other merchants that do not impose surcharge

Cardholders can report “unacceptable practices by merchants’’ Association of Banks in Malaysia (ABM) or directly to merchants bank.

4 comments… add one
  • Almost all computer shops at Lowyat will charge 2% more if you pay by credit cards.

  • Yes, it is illegal if you are not aware.
    In business, we call it willing buyer-willing seller.

    Anyone to prove me wrong? Then lots of Lowyat shop will be fined.

  • An Electrical shop in USJ will add an additional 5% for using CC!! Major abuse to us customers who dont carry around much cash for safety reasons!

    • Don’t buy from them unless they the price they offer much less than other shop.


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