Apr 24, 2013

Malaysia's electronic payment

Effective 2 May 2013, the fee for Interbank GIRO or IBG transactions that is performed online via internet banking and mobile banking, will be at 10 sen. (compared to RM 2.00 existing).

In contrast, the charge for cheques will be progressively increased . Effective 1 April 2014, banks will charge a cheque processing fee of 50 sen on the issuer of the cheque. This fee is in addition to the existing stamp duty of 15 sen per cheque leaf..

Why is Bank Negara doing this? 

The fee for electronic payment methods will be reduced to incentivise businesses and consumers to adopt the more cost effective electronic payment methods while charges will be levied on cheques to reflect its higher cost.   This effort is to reduce the cost and inefficiencies associated with the use of cheques.  The low online IBG fee is aimed at providing the incentive for users to switch from other more costly payment methods to lower cost alternatives

Bank Negara is giving a period of one year for the general public and businesses to familiarize with, adjust and migrate to using IBG for their payment transactions. 

Online payment via internet banking and mobile banking lends significant benefits to both individuals and businesses. Individuals enjoy the convenience of transacting anytime anywhere, avoiding the queues at bank counters while businesses can lower the costs of doing business through the reduction or redeployment of resources used for handling cash and cheques. With more payments done electronically, there will also be cost savings from manual processes including postage.