tinkerbel,

If you look at what the bank charges the merchants, you'll realize why banks nowadays encourage you to use Ezy Pay transaction with 0%.

Assuming that you'll settle your purchased amount whether if you use Ezy Pay or normal card swipe, the bank don't earn much from consumer (taking away the newly introduced "no more 20 days interest free period" by Bank Negara).

However, the bank stands to earn a whopping 4.5% to 5% of total amount swiped for Ezy Pay as compare to 2% (in some cases I know some merchants get charged 1.2%) for normal transactions. And, if you read the T&C even more closely you'll realize some bank imposed hefty penalty to card holder for late payment as compare to normal transactions.

So next time if you swipe for Ezy Pay 0% scheme, bare in mind that the merchant will charge you the additional 5% as "handling fee" or "processing fee" or they have had that 5% built into the price.

My experience was, when I bought my 37" LCD TV a year ago, the listed price tag was RM3299. After much negotiation, the ultimate best negotiated price was RM3000 flat with Ezy Pay. In the end I paid RM2800 cash for the TV. At the end of the day, with consumer goods profit margins so thin, merchants will have to build in what ever fees and charges that banks imposed on them and pass it to the consumer.....

wirelessdude,

In your case, it's a matter of you being too good a paymaster, or what bank would call "low net worth" customer. In simple terms, it means they can't profit much from your usage, and with free annual fee card available everywhere, the bank may lose RM24 (that's the amount to produce a credit card) just to supply you a piece of plastic card.

Thing is, the bank can only make some profit out of your usage if you use your card at the bank's merchant. Assuming you do go to their merchant and swipe 8k a month and settle immediately, they make 1% to 2% out of your usage of the card on their merchant (that's why most I.T. retailer charges you 1% to 3% if you use your card). That's RM80 to RM160 per month. Worse if you use it on other bank's merchant, they get nothing out of the deal.

As far as I know, AirAsia is RHB merchant, and RHB really sucks in terms of retail Merchant base (most merchant are either MBB, CIMB or HSBC).