KUALA LUMPUR: MCA president Datuk Seri Dr Wee Ka Siong wants the merchant discount rate (MDR) fee for using DuitNow quick-response (QR) payment to be abolished permanently.
Wee said PayNet, the operator of the DuitNow QR code has confirmed there was indeed a fee for MDR, which merchants pay for accepting card payments.
"We must continue to apply pressure until this waiver is made permanent. The profits of the banks are already very high.
"Certainly, PayNet or the banks will grant MDR waivers to merchants for DuitNow QR payments under pressure from stakeholders.
"They should continue the waiver for DuitNow QR users, most of whom are small merchants who would receive cash payments if they did not use DuitNow QR," he said.
Wee believed banks will also benefit from the reduction in cash handling costs if merchants prefer using the DuitNow QR method over cash.
"This waiver is also aligned with the government's digitalisation efforts," he added.
Recent news reports claimed that traders receiving money via the DuitNow QR would incur a 0.25% fee when transferred from a bank account and a 0.50% fee for transfers made via credit cards, effective across all banks.
Today, PayNet clarified there would not be any new fee for using the transaction service, indeed it is the waiver on MDR would expire on Nov 1.
PayNet said the MDR was initially waived to promote QR payments in 2019, and it was extended due to the Covid-19 pandemic.
Wee congratulated the public and media who voiced concern over the recent MDR fee confusion, claiming that has pushed banks to extend the waiver of the incentives.
"If the media, elected representatives, and merchants did not protest yesterday, I am confident that the MDR fee for merchants would have been imposed starting Nov 1 without any due consideration on the part of the banks.
"We have only heard that CIMB is extending the waiver for two months. Latest news, Public Bank has also announced the waiver of MDR until further notice.
"Congratulations to those who raised their concerns!" said Wee.