basically merchant pay banks a fee to use their credit card terminal for transaction. (there's also interbank fees where let's say u swipe ocbc card on mbb terminal, there is a fee that ocbc pay maybank or vice versa, something like that)
this is why sometimes we get 2% charge when paying by cc, because merchant pass this fee to consumer.
the collection of this fees in turn was used by the bank as benefits to cardholders (ie cash bank, treatpoints, contest)
these fees get higher as banks offer more benefit, in turn, merchant will charge goods higher price for cc payment.

BNM wants to encourage cashless payment, so they enforced a ceiling price for these fees.
banks get lower collection from these fees, in turn, less benefit for cardholders.

there is a long article for this, but this is my understanding of it. someone correct me if i am wrong please.

my point of view is that BNM is trying to discourage you to bring cash out, and use debit card instead.

i think banks do this as a knee jerk reaction to protect their profits first.

in the long run, they will start to introduce new benefits as they face competition from other banks when cashless payment become widely available.

This post has been edited by confuzan: Jun 26 2015, 03:41 PM