https://genxgenygenz.com/2016/04/22/the-bes...ash-back-cards/
https://genxgenygenz.com/2016/04/24/the-bes...laysia-part-ii/

Captain Gen-X has done a great job explaining about this credit card combo.

In this 'Credit Cards, Debit Cards and Loyalty Cards' subforum, do we have a specific thread that provides further discussion on the methods of using AEON Credit Cards plus Online Cash Back Cards?

- Which AEON card is most suitable to be a part of this combo?

- How do we calculate the effective cashback of this combo, accounting for 2% fee and 6% GST (imposed by PosOnline) and RM1.50 fee (imposed by Aeon)? Gen-X has stated 1% to 4% cash back, but I would like to know how to calculate the exact effective cashback.

Thank you.

Here is a list of Merchant Discount Rate (MDR) (for local issued cards) charged by the merchant card service of a local bank, to a merchant who uses the credit card terminal.

Type of Local Issued Cards	Merchant Discount Rate (MDR)
MyDebit Cards	0.80%
Visa Debit/Prepaid (Local Cards)	0.80%
MasterCard Debit/Prepaid (Local Cards)	0.80%
Visa Credit (Local Cards)	1.60%
MasterCard Credit (Local Cards)	1.60%
American Express (Local Cards)	3.00%
Union Pay (Local Cards)	1.80%

By right, based on The Payment Card Reform Framework by Bank Negara Malaysia, the interchange fee for all credit cards (Visa, MasterCard and American Express) is capped at 1.10%.

1) The interchange fee is a major component of Merchant Discount Rate. Then again, why is Merchant Discount Rate so much higher than the interchange fee (at least 0.5% higher)?

2) Since the interchange fee for Visa, MasterCard and American Express credit cards is same at 1.10%, Merchant Discount Rate should be almost same for Visa, MasterCard and American Express credit cards. Having said that, why is Merchant Discount Rate for American Express credit cards so much higher than the MDR for Visa, MasterCard credit cards?

This post has been edited by kart: Dec 4 2016, 06:42 AM