New DuitNow rate reportedly from Nov 1 unfair to small businesses, says Dr Wee

September 28, 2023

New DuitNow rate reportedly from Nov 1 unfair to small businesses, says Dr Wee

KUALA LUMPUR: The new DuitNow rate that is reportedly taking effect from Nov 1 is wholly unfair to small businesses or roadside “warung” without card payment facilities, says Datuk Seri Dr Wee Ka Siong.

The MCA president said this would only discourage the growth of cashless payments and disadvantage the smallest and most vulnerable traders and retailers.

“Considering that DuitNow QR recipients (Boost, GrabPay, Setel, and Touch ‘n Go) are small businesses or roadside ‘warung’ without card payment machines, this new DuitNow rate is tantamount to discrimination against them and wholly unfair for these small entrepreneurs.

“At a time of rising costs of living made worse by the effects of inflation, we should not be making seemingly trivial decisions that come with ripple effects to burden the rakyat and cause more inconvenience.

“This will discourage the growth of cashless payments and more likely, vastly disadvantage the smallest and most vulnerable of Malaysian traders and retailers,” he said in a Facebook post Wednesday (Sept 27).

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He was commenting on portal reports claiming that from Nov 1, a charge of 0.25% would be levied on the amount of DuitNow QR transactions for debit card payments and 0.50% for credit card use.

Currently, there is no charge for DuitNow QR transactions under RM5,000 and a fee of 50 sen for transactions above RM5,000.
Dr Wee said the 0.25% fee is significantly higher compared to the fees for using a local or international debit card.

“Domestic debit card fee is 0.10% of the transaction amount or RM0.37 + 0.001% of the transaction value (whichever is lower).

“The international debit card fee, meanwhile, is 0.27% of the transaction amount or RM0.63 + 0.001% of the transaction amount (whichever is lower),” he wrote.

“If all this is true and comes to pass, the government must tell us how they are prepared for the repercussions on Malaysians?

“Will it absorb the costs for SMEs and small businesses or at this point of time, do away with the interchange fee adjustment under BNM (Bank Negara Malaysia)?” he said.