i really agree, these merchants should not applied for credit card terminal at the first place if they could not afford to pay the processing fees. I have a chat with one merchant who against this practice (really rare to have this kind of people) and they said that merchant should think that having credit card facility actually increase their sales and marketing.

Another practice by merchant is to set a minimum limit to pay using credit card e.g. RM 50 and RM 30. I think this occur because they want people to spend unnecessarily to achieve that minimum charge and their sale will increase (although no processing fees is charged).

IS setting a minimum swipe amopunt illegal too ?

Hi hye, good info there. I always get puzzled, annoyed and helpless by such merchants and resort to cash term.
As I reckon lyn forum is a good channel to educate fellow Malaysian on our rights (and many other things), I was thinking what to do next.

So, to report them, which channel is more effective? Visa/Master or issuing bank? Is there a specific email id to use? (keyword: effective. We don't want our complaints just turn into trash.)
Then, what details to provide in our report? Since the merchant put total sum (product price + surcharge) on the receipt, I guess we need to snap a picture of the product with price tag, then write the story and indicate the merchant name, address, and send the receipt as proof.
Or unless, you are saying we can also report them without actual document proof, i.e. been told there is a surcharge but we paid with cash.
(The keyword here again is effective report.)

I know this abnormal "norm" is hard to be changed overnight, but I urge all of us to do our part with hope for a better tomorrow.
What are your thoughts, guys?
If anyone had experience on such report and/or received reply from visa/master/bank, do share the details here.

they won't be so stupid, normally they add the surcharge into the product price. then only then product price is displayed in receipt.

This post has been edited by lamode: Jan 12 2013, 11:24 AM

That's what I meant. For example, if they put total RM102 on receipt, we need to snapshot the actual price tag RM100 to show as proof lah.

yeah... bank? visa? mastercard?

I wonder,why is it still prevalent especially in lowyat plaza? being a hot place for digital item, visa/MC should have come down hard on them. I remember reading it in the newspaper where PIKOM themselves says this is normal practise to keep prices low.(am looking for the article) Why or Why....

http://biz.thestar.com.my/news/story.asp?f...27&sec=business

check the bottom part. When u pay at PC Fair, u shouldnt pay the charges because the merchant has signed that they will not pass on the charges to the cardholders.
http://www.pikom.org.my/cms/PCFair2012-3/E...cation_Form.pdf


PIKOM themselves practise the charges of surcharge
http://www.pikom.org.my/cms/Membership/For...d2012_PIKOM.pdf

This post has been edited by yorkhan: Jan 12 2013, 03:24 PM

It says I fully understand that a 3% service charge will be deducted from the amount refunded (if any) on payment made via credit card.
Only on refund that PIKOM will deduct 3% service charge.

Let's say the fee is RM2000
PIKOM need bear 3% Credit Card Merchant Fee : RM60, but they don't charge RM2060 to the Credit Card (This is WRONG !!!)
IF PIKOM does a refund, it will return RM1940

I'm not sure, maybe it is not illegal. but this maybe one of the technique to increase sale despite they not charging the surcharge

not really, from a retailer point of view, it is too much trouble to close a small transaction and the associated record keeping

No. This translate into the merchant not accepting credit card for any transactions falling below certain limits/value. It's like self imposed by the merchant although officially no such rules set by the banks/VISA/MC exist to prohibit nor encourage such activity. If you look at it, it's no difference then merchants declining to accept credit card but to instead ask for cash - it's not illegal but a choice that merchant do. Cash = no fees paid to the bank.

In the past I have made several complaints to the banks by calling in and you will be required to submit evidence to support your claims. Malaysian merchants would think their misdeed would not be detected as the "price + surcharge" is all bundled into one single price in your receipt. If such clear evidence of surcharge exist (Means on your receipt the surcharge is itemized), the merchants just hand delivered on a silver platter the evidence. As pointed out in a member earlier
1. Show the original price of the item + Date Stamp to provide evidence is current.
2. Provide your receipt with the inflated price.

I had in the past spoke with the banks thus I'm aware such surcharges with attract heavy fines. Merchant are allowed "3 strikes".
1st offense - Possible Fine RMx,xxx + Stern warning
2nd offense - Fine RMxx,xxxx + Stern warning
3rd offense - You can guess how heavy would the fine be + permanent ban from using cc facility

Let's just say, when it come to penalties - it'll be sufficient to deter the merchant.

You can make a report to VISA/Mastercard International (Yes ... I agree it's not so straight forward as you need to look for the contact) or (The best approach) lodge the report with the bank (All card issuers CS will accept the complaint unless the CS is untrained to accept such complaints) with the evidence. If anyone asking ... Yes ... I was successful in my complaint. The merchant stopped practicing the surcharge once the bank contact them and I'm sure the warning spooked them enough.

I was very worried about getting blasted for the original remarks but I'm happy things turns out positively. Thank you folks!

This post has been edited by hye: Jan 12 2013, 06:44 PM

I have to correct you my friend.
In business accounting, businesses are supposed to record all transactions activity irrespective of what the value is - big or small. Can be even 1 cents and they still have to record it. When you don't record it, it means you are hiding your transactions. The act of hiding your transactions is illegal from financial/taxation point of view - please take your time to understand what that means.

As I mentioned before, it has for so many years been a rampant activity (all over and not just in LYP) until the public thinks it's acceptable. An example would be the reader whom triggered my reply had thought it is an acceptable practice and worst advocating double standards when it comes to recognizing a violation had occurred.

Banks are aware of this but unless consumers lodge an official complaint with evidence it's as good as the offense did not happen. And for so many years, consumers "think" it's acceptable - more of a chicken and egg situation.

Let me just mentioned it again - The practice of adding surcharges by merchants when customers choose to pay using credit card is illegal and violates the T&C that the merchant sign with the banks/MC/VISA.

This post has been edited by hye: Jan 12 2013, 06:55 PM

The bus company mostly is malaysia company,even some private company if they want to charged us,consumer,if we go and complaint,they sure kena kao kao one..singaporean famous as kiasu..little bit they not satisfied,they sure complaint

Do we need to call up the card centre to activate internet transaction?

Both Maybankard 2 also rejected when making a payment. (the service provider is paypal)

I as a retailer do not practise minimum amount but the point I was trying to make was that many retailer don't want the additional work of reconciling small amounts - may not be worth their while. Imagine someone swipes rm12 in a small store. the owner will have to either wait for his rm12 cheque (less commission) or his rm12 giro credit (less commission) if that is his only card transaction for the day. There is work involved to check that the payment is in and that's why unless the swipe amount is attractive, in the absence of laws, they make their own laws of minimum swipe amounts.

This is especially true of merchants who do little card business. Imagine the whole day turn over rm1012 - rm1000 cash and rm12 card and then have to look out and reconcile the card payment. I was not hinting at anything illegal or hiding the transaction.

This post has been edited by sbd: Jan 12 2013, 11:37 PM

Forget about bus company, even AirAsia is doin it....

Yes, transaction date that matters.
Posting date is only matters usually during end of the month, whereby the merchants might be late in doing their posting and causing the 5% rebate will only be included in the next month's cycle.

yes you do

We should report AirAsia to the bank?

i didnt call the card centre to do so, was able to make all sorts of transactions after getting the card