Press Digest: Fluctuation of ringgit not to be blamed for credit cards rejections overseas

PETALING JAYA: Don't blame the fluctuation of the ringgit for any rejection of Malaysian credit cards for transactions overseas, says Bank Negara Malaysia (BNM).
Responding to a query on a report that a Malaysian executive had her credit card rejected at points of sales overseas, a central bank official said any fluctuation in the ringgit would not affect the acceptance of credit cards issued in Malaysia as such transactions were based on the clearing and settlement mechanism between the parties involved.
The official, who was not named, told China Press: "It is illogical to blame the rejection of Malaysian credit cards overseas on how the ringgit fares. The rejection of a Malaysian's credit card by overseas business outlets has nothing to do with the strength of the Malaysian currency."
Although the ringgit is not accepted as legal tender for transactions at business outlets overseas nor accepted by money changers at foreign countries, there has never been any doubt on the use of Malaysian credit cards overseas.
According to China Press, it had been reported that the Malaysian executive complained that an American outlet for luxury brands and a British international airport refused to accept her credit card, forcing her to use her debit card, and prompting her to believe that the two incidents had to do with the devaluation of the ringgit.
The BNM official explained that in many instances, Malaysian credit cards were rejected because the cardholders were not aware of the details of their cards, such as the credit limit.
"If your card limit is RM50,000 but you are trying to make a transaction valued at RM60,000, your card will of course be rejected," said the official.