MATTA unhappy with BNM’s no surcharge ruling on cards

KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (MATTA) is unhappy with the prohibition of a surcharge on credit card payments, as it can inconvenience members and the travelling public.

President, Tan Kok Liang said travel agencies and tour companies operated on low margins, unlike retail outlets at shopping malls.

“As such, a surcharge has to be imposed on credit card payments just to recover the cost of the merchant discount rate (MDR) charged by banks,” he said in a statement today.

He said the easy way out for travel agencies and tour companies was to embed the MDR into the pricing, but it would be unfair to the vast majority of customers who paid by cash, cheque or online.

“It would benefit consumers more when charges are transparent and kept as low as possible,” he added.

Tan said action against tour operators trying to recover the MDR cost would only backfire.

“It is better for Bank Negara Malaysia to explore the possibility of abolishing the MDR or reduce the rate substantially for large amounts. This would benefit both consumers and businesses immensely, and spur the growth of cashless payment in Malaysia,” he said.

He noted that MATTA members must abide by its code of ethics, which includes operating a legitimate business in a fair and transparent manner.