Malaysia: Customers are paying the price for cashless transactions

Malaysia: Customers are paying the price for cashless transactions
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

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The cashless society from an ethical point of view

The debate about the move towards a cashless society has been at the center of the scene for several years, now. Various angles have been taken by economists, politicians, banking institutions and sociologists. Beyond the technicalities of the debate, lies the question of freedom, of inter-citizen solidarity and of governmental responsibility. The debate cannot remain in the hands of financial specialists, it is first and foremost an ethical, political and societal issue.

The cashless society from an ethical point of view

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