Exemption of fees for cashless payments is at discretion of service providers

KUALA LUMPUR: The government does not have the power to provide a fee exemption to those making payment under the cashless system.
In a parliamentary written reply, the Finance Ministry said the decision on providing discount or fee exemption to consumers is at the discretion of the service providers.
The ministry said some service providers had already provided fee exemption or discount to encourage the usage of e-payment among consumers.
The ministry was responding to Lim Lip Eng (DAP-Segambut) who asked why consumers who made payments through several services such as Touch 'n Go or the internet were not given a discount to promote the cashless payment system.
The ministry said the banking industry has benefited from a total of RM105.8 million from the e-Payment Incentive Fund between 2015 and 2016 to provide discount and fee exemptions.
"This includes fee exemption on internet banking subscription, security token fee, interbank GIRO and Instant Transfer," it said.
It added consumers who use Touch 'n Go Plusmiles at PLUS tolls can also enjoy a 5% rebate.
"Meanwhile, consumers who use the e-payment system to pay for public transport fare under Rapid or KTM can receive a discount of up to 20%," it said.
Later in a press conference, Lim said the government should encourage the cashless payment system among consumers by providing discounts.
He argued it was uncommon as consumers in other countries were provided with discounts if they use e-payment for public utilities.
It was reported in May that Touch 'n Go Sdn Bhd (TNGSB) had opposed the 10% surcharge placed by TNG system providers at parking sites and shopping centres.
Many Malaysians have begun questioning the reason for the additional 10% surcharge for using the TNG card, which is an environmental-friendly and convenient practice and against the government's move to encourage a cashless society.
Prime Minister Datuk Seri Najib Abdul Razak on Nov 20 stated that negotiations are ongoing between TNGSB and the service providers to absorb the cost.