What is Credit Card?
Who says credit cards are a luxury these days? In fact, the right credit card could be an absolute lifesaver in times of unforeseen need. With the right credit card you could pay your bills, go for shopping, dine at your favorite place and get exciting reward points as well. Apart from these, a credit card helps you increase your credit score as well, that comes handy when you apply for a home loan or personal loan in the future.
Explore More on Credit Cards
- Cash vs Cards Payments Malaysia
- How to Find the Perfect Credit Card in Malaysia
- How to Improve your Credit Rating in Malaysia
- How to Increase Credit Limit in Your Credit Card
- How to Pick an Emergency Credit Card
- Student Credit Cards in Malaysia
- Supplementary Credit Cards in Malaysia
- When to Use Credit over Cash
- Shed the Excess Interest Rates
- Protecting One’s Credit Card While Travelling
- Defaulting Your Credit Card Bills in Malaysia?
- Top 5 Reasons Why Owning a Credit Card is Good for You
- How to improve your chances of having a credit card approved
- Credit Card fraud: Are you aware of it?
- Understand Credit Card interest free period
- Reward Credit cards Malaysia
All you need to know about Credit Cards:
Credit cards are instruments issued by financial companies that enables customers to make purchases without transacting in cash for payments at a later date. It is a form of credit extended to users. The amounts spent through a credit card have to be repaid within a stipulated time called the payment cycle. If the payments are made in time, users have to pay interest on the outstanding amount at a predetermined rate of interest. Credit cards can be used to make cash withdrawals during emergencies. It can also be used to transfer funds.
Features and benefits of credit cards in Malaysia:
Credit card limit:
Credit card limits define the maximum amount of credit available on a particular card. Users can make spends on a card up to this limit without incurring any penalty. The credit limit is decided by the credit card provider. Creditworthy customers are usually offered higher credit limits. In case of delays in payments, card issuers may decrease a user’s credit limit.
The issuing company charges an annual fee every year for the use of its credit cards by customers. Annual fees may be charged annually or monthly depending on the terms and conditions relating to a card. Not every bank charges an annual fee and some offer customers annual fee waivers.
Interest rate or APR (Annual Percentage Rate):
It is the amount charged by the bank or financial institution on the money borrowed. The interest rate charged varies from each bank. Credit card interest rate is one of the main ways through which the credit card provider makes profit.
The credit card reward feature allows the user to gain points every time they use a credit card. These points can later be exchanged for cash or can be used to pay for other services. One can redeem the points for travel, gift cards, merchandise, movie tickets and so many other benefits.
Payment due date:
The Payment due date is the last date by which the customer should repay the debt to the insurer. If the payment is not made before the due date, one will have to face late payment penalties.
Minimum payment is the minimum amount of the balance outstanding a credit card holder should pay to avoid a late fee. It’s advisable to pay more than the minimum payment to maintain good credit.
Transferring the balance amount from one credit card account to another credit card account issued either by the same or a different company is called balance transfer. It is usually done to avail better features on a new card. This can include higher credit limits, a lower APR and better rewards. The process of balance transfer from one credit card account to another is usually very quick.
Cancellation of credit cards is usually done very easily. Some credit card companies may charge cancellation fees. To cancel a card, outstanding balances on the credit card have to be cleared or transferred. Cancellation may be required when the user wishes to avail another card, finds no use for the card, cannot make payments on the card, finds the credit limit inadequate or even if the card is stolen or misplaced.
Cash can be withdrawn on credit cards by paying transaction charges. In case of cash withdrawals, interest is charged for the period until the amount is repaid. In essence, there is no credit free period and one has to start paying interest from the very first day of the withdrawal. Cash withdrawals are usually made during emergencies.
Finance charges include the interest costs and other fees incurred when using a credit card.
Billing / Payment Cycle:
This refers to the period between when two billing dates. Spends on a card are recorded from one billing date to another. The total amount has to be paid on the bill date which is a pre-determined date of every month. Due date is a date stipulated in the bill, usually after the bill date. The total amount spent or outstanding as of the bill date has to be cleared by the due to date. If not, interest and late fees will be levied on the balance.
Credit Card Do’s & Don’ts
|Make sure that you compare various credit card products. The best way to do so is online where ample information is available for various credits cards.||Do not go for a credit card, just because of seasonal offers, without researching the long-term benefits of the card. There are various credit card which may offer advantages for initial months of usage but may not be viable eventually.|
|Make sure that you choose cards with a credit limit that is apt for your monthly expenditure. Higher credit limits often become liability later.||Do not forget that when the bills arrive, you have to pay up the amount. Remember that the more debt you carry across every month, the interests get calculated through compound interest, causing a headache.|
|It is essential to keep a check on the applicable interest rate, interest free period as well as the hidden charges.||Do not take the terms and conditions for granted. Go through the literature thoroughly so that you do not miss out on anything which may later put you in an uncomfortable situation.|
|If you have over spent through your credit card for a month, make sure that you have a back plan for repayment.||Don't take the credit card limit for granted. It may be higher than your monthly income and hence when it comes to repayment the credit card will add to financial burden and debt.|
|It is vital to maintain an excellent credit history. It not only allows you to take loans and other financial aids when necessary, but helps to maintain a comfortable lifestyle in the long run.||Do not overspend even if you can afford the amount in the future as a poor credit history affects your financial image.|
Important Things to Keep in Mind While Applying for a Credit Card
There are few things that need to be checked before you apply for a credit card. These are only the basic things, it is important to read through the credit card literature for hidden costs, company policies etc:
Maximum Credit Limit - The credit limit in Malaysia is based on monthly income of an individual. If a person earns RM 36,000 or less, he can own multiple cards but the maximum credit limit is two times their monthly salary from each bank credit card which gives adds up to a credit of four times the monthly salary of the card holder from the banks. If the individual is earning over earns RM 36,000, then the maximum credit limit is dependant on the bank.
Minimum Monthly Repayment - Minimum payment required is 5% of the credit card holder’s current balance or a minimum RM50.
Documentation Required - For Salaried Individuals:
- A copy of your MyKad (both sides),
- Latest three-month payslips + latest three-month bank statements OR latest three-month EPF statements.
For self-employed Individuals:
- A copy of your MyKad (both sides) and latest Borang B/BE with LHDN acknowledgement.
Basic Eligibility Criteria for applying Credit Card
- The individual should be 21 years of age or more.
- Minimum annual income is dependable on the bank
- Minimum annual income is dependable on the bank history
- Credit Card providers often check your credit history to determine your eligibility
Top Bank Credit Cards in Malaysia 2017
- CIMB Credit Cards
CIMB credit cards are one of the most sought after cards in Malaysia. CIMB offers a host of rewards and benefits to its credit card customers. Get cashbacks of up to 5% when you swipe your CIMB credit card at retail stores and restaurants. You can choose from a wide array of CIMB credit cards that offer a variety of deals at numerous partner outlets. With interest rates as competitive as 18% and the facility to make cash withdrawals and balance transfer, CIMB credit cards are a good financial product to choose. CIMB credit cards also offer supplementary cards along with primary cards so as to make your card usage truly personal and convenient.
- Maybank Credit Cards
Maybank credit cards offer several exciting offers over and above the regular features of balance transfer and interest-free period. Maybank cards provide customers up to 5 reward points on every ringgit spent. The interest rate on payment of Maybank credit card bills is 8.88% which is attractive as well as competitive. Maybank cards have unique features like weekend cashback offers, financial management services for card holders and several of these cards come at nil annual fee. These cards offer great cashbacks and reward points every time they are swiped.
- UOB Credit Cards
United Overseas Bank in Malaysia offers a wide range of credit cards to customers. These cards offer exclusive and exciting benefits like travel benefits, cashbacks and reward points. UOB also offers credit cards designed exclusively to meet the needs of female customers. Reward points offered on spends made through your UOB credit card can be redeemed at several partner outlets. Not just that, UOB also offers great freebies when you apply for any of their credit cards. You can avail balance transfer program on these cards for a maximum tenure of 1.5 years at a substantially low interest rate of 7.77%.
- Citibank Credit Cards
Get your choice of Citibank credit card from a wide array of credit card choices offered by the bank. Travel, shopping, fuel and lifestyle are the most basic categories of cards offered by Citibank. Earn up to 10 reward points against each ringgit spent using your Citibank credit card. Save on fuel and air tickets and get bonus redeemable air miles on money spent using Citibank credit card. Flexible reward redemption program offers customers a good avenue to redeem their point against substantial purchases. With annual fee starting from zero, Citibank credit cards offer ATM transactions at millions of outlets across the globe. Not only that, avail a nil upfront fee and balance transfer program with any of these credit cards from Citibank.
- HSBC Credit Cards
Avail some of the best credit cards from HSBC. The bank has a huge network of branches across the world that makes these credit cards truly global. HSBC offers great discounts and reward points on spends made using the bank’s cards. Stand a chance to win some exciting goodies when you apply for an HSBC credit card in Malaysia. The bank offers separate credit cards under Islamic banking division. Interest rate on credit card payments is kept at an attractive 6.99% and a minimum transfer amount of RM 1000 is offered to customers.
- AmBank Credit Card
Get a credit card from AmBank to avail infinite exclusive privileges and deals at various restaurants and golf courses. Earn 5 times reward points every time you swipe your AmBank credit card to make a purchase. The bank also offers Islamic banking credit cards along with regular credit cards. The bank does not charge any annual fee on these credit cards and minimum monthly payment required is 5% of the outstanding balance. Cash advance fee is 5% of the amount taken as advance and late payments are charged at 1% of the outstanding amount. Also, customers can convert the points earned to frequent flyer miles and avail fast-track immigration services at airports across Malaysia.
- Public Bank Credit Card
Public Bank credit cards offer exciting benefits and attractive rates of interest. Use these cost of offers and discounts at partner outlets. Earn great reward points and cashbacks when you spend on dining, groceries, shopping and petrol. Interest rate applicable is 15% and annual fee is different for different cards. Minimum income to be eligible for credit cards by Public Bank depends upon the credit card that you are applying for. Balance transfer facility is offered for 6 months at 0% interest rate and 0% upfront fee.
- Hong Leong Credit Card
Hong Leong credit cards are one of the most popular credit cards in the Malaysian market. Customers can earn exciting reward points on every ringgit spent using the Hong Leong credit card. Credit cards by Hone Leong are offered for travel, buying groceries, shopping, dining and entertainment. Some cards come with special deals like movie tickets etc. Balance transfer facility is offered for 12 months at 0% upfront fee. Some cards also offer travel insurance to card holders. Cash advance facility is available and is charged at 18% per annum.
- RHB Credit Card
RHB offers a host of credit card options to customers to choose from. If you are a great admirer of luxury and exclusivity, RHB credit cards are a sure bet. Key benefits of RHB credit cards include airport Speed Pass 4xFast track services on immigration at 10 airports around the world, access to Plaza Premium Lounges at airports in Malaysia, complimentary Spa passes, 20% Discount on Spa services at select centers, exclusive travel desk for tour bookings, travel insurance etc. Cash withdrawals can be made and are charged at an interest rate of 18%.
- Standard Chartered Credit Card
Standard Chartered credit cards are quite popular in the Malaysian financial market. Customers can earn up to 10% cashback on spends made using Standard Chartered credit cards. Exclusive cards are offered for customers who wish to avail priority banking and attached elite services at restaurants and golf courses. Interest is charged at 15% per annum and minimum eligible income depends upon the card that you wish to avail. These cards offer some amazing dining, travel and shopping deals. Balance transfer facility is offered to customers for a tenure of 6 months at an interest rate of 1.99% and for 12 months at 2.99% interest rate.
So what are you waiting for?
It simply does not make sense if you still borrow money and pay interest right from the first month. Buy a credit card, not only to get instant credit but also enjoy a host of shopping experience, special discounts and not to forget the importance of your credit score. So stop scratching your head and just click.
Benefits of Credit Card Comparison
A credit card when used effectively can be a very handy tool that allows one to extract the maximum value from their purchase. But for one to do so, they would need to not only use the card effectively but choose the card that is right for them. There are a plethora of credit cards available and though many of them serve the same purpose the benefits that come with it vary.
Banks offer credit cards which are tailored for people across different walks of life to attract more customers. Some customers may want to use their card every day and hence benefits provided in such cards include reward points for groceryexpenses or cashback for petrol expenses. Others may be frequent travellers and as such will have a card that provides travel insurance or frequent flyer miles. Other cards may be tailored for those individuals with high incomes and offer exclusive access to premium hotels and so on.
Comparing credit cards is crucial to find the credit card that is right for you. Even though a value added feature may look good on paper, without prior comparison and research one would not be able to determine whether the method of redemption of points or discounts received are effective.
Comparing credit cards goes beyond redeeming reward points. It boils down to enabling a potential cardholder to truly understand the workings of the credit card. Comparison helps in not just finding a card with lower interest rates of cards having no annual fees but it also helps in making one aware of any hidden charges or high administration charges. It even helps in ascertaining the cost incurred by holding on to supplementary cards.
It is highly advisable for one to thoroughly compare the various credit cards offered and choose one not just for the reward it offers
Credit Card Interest and Repayment Calculators
This useful tool is widely available online and most bank websites have their own calculators available. It enables one to assess the amount of interest to be paid on the total bill amount based on how much the cardholder pays each month. It also provides the cardholder with information such as how many payments need to be made in order to clear the outstanding amount.
Most credit cards have a minimum monthly payment of 5% of the outstanding amount and while this may seem low, affordable and easy, in reality it is not the best method to follow.
Minimum monthly payments barely manage to service the interest charged alone and does very little in servicing the principal loan amount. Paying the minimum amount increases the time taken to clear the debt and will result in the cardholder paying more interest.
Ideally making full payments would be the best way but more often than not cardholders are unable to make full payments due to other commitments or unforeseen emergencies. In such cases they should try and pay as much as they can as any additional amount above the required minimum helps in lowering the compound interest incurred.
Credit Limits in Malaysia
Credit cards with their popularity have become a currency by themselves. Most of our daily transactions now involve the use of credit cards and with more and more merchants accepting a wide range of cards, the usage of credit cards will only become more frequent. We do use a credit card to charge our expenses to but have we considered exactly how much can be charged and how this number is derived.
The limit of credit provided to a cardholder not only depends on the bank that’s issuing the credit card but most importantly depends on the annual income of the cardholder. This is the reason a bank sets the specified credit limit and why cardholders having the same card from the same bank may have different credit limits
The main criteria of setting the credit limit is income and to be more precise there are 2 categories of income as looked at by a bank. The first category is if the cardholder earns an annual income of less than RM 36,000. In such cases, In Malaysia, the cardholder is bound by law to have principle cards issued by not more than 2 credit card issuers. The maximum credit limit available is usually double the monthly income. These laws were developed by Bank Negara Malaysia and implemented in 2013 to cultivate a habit of sound financial management among cardholders.
The second criteria is when the cardholder earns an annual income of more than RM 36,000. Such cardholders are not yet subject to terms and regulations set forth by Bank Negara and can have multiple cards. Even the credit limit on each card is set by Banks issuing the credit card at their own discretion.
Credit Card Repayments in Malaysia
This aspect of credit cards is what people dislike the most. As easy as it is to swipe a card and complete a transaction quickly, the payment date will always catch up. Most people tend to either take payments way too lightly and soon find themselves being overwhelmed by credit card debt whereas others take it too seriously which prevents them from using their card effectively and taking full advantage of the various benefits the card may come with.
The right method is to use the card in moderation and repay the amount due on time. A cardholder should always try and go in for full payments. Making minimum monthly payments will result in more money being spent on interest. The minimum payments are barely enough to make a dent into the principal amount and most of it goes into servicing interest charges. A cardholder should try their best to make a little more than the minimum payment each month. Many credit cards offer a 0% interest period or an interest free period which when used correctly will enable the cardholder to not pay any interest at all. This however is subject to full payment, participating merchants and date of payment.
One simple way to calculate what the monthly payments would amount to be is to use a credit card calculator. This popular tool is widely available online and is very simple to use. A cardholder only needs to enter what they think they owe, the interest rate of the credit card and the months they want to take to pay it and the calculator will show you the total amount that needs to be paid, how much of it goes for interest and how long it would take to pay it off.
Credit Card Interest Rates in Malaysia
As much as credit cards are utilized, the main aspect of a credit card that not just influences the usage of a credit card but decides the monthly amount to be paid is the interest rate. Interest rate of a card differs from bank to bank and card to card and is one of the major factors that decide the popularity of a card. People not only take up low interest cards thinking the monthly payments would be lower but also take up low interest cards to utilize their balance transfer scheme and transfer outstanding credit card dues from different cards to that particular card.
Most of the credit cards charge an interest rate of close to 15% p.a. whereas the low interest cards charge interest rates of close to 9% p.a. One should keep in mind however, that to offset the higher interest rates in other cards, they are usually added with a lot more offers, rewards and other value added features as compared to low interest credit cards.
Some of the bestselling low interest credit cards in Malaysia are offered by Maybank, Alliance Bank, AmBank and Affin Bank.
What number of Cards Can You Hold in Malaysia?
Card holders in Malaysia with a monthly income of RM36, 000 or less per year are restricted to a maximum credit limit of twice their monthly income. People who are earning more than RM36, 000 per annum are given a maximum credit limit by the card issuers, based their monthly income.
Hence, taking this too into consideration, an individual with an annual income that is less than RM 36,000 is only entitled to up to 2 cards. For people falling for the higher bracket, the number of cards are not restricted to any number of cards or card issuers. However, there is an additional service tax per year, for each card owned by an individual. It is calculated as RM 50 x the no. of cards the number of principle card and RM 25 x the no. of supplementary cards.
It is advisable not to apply for too many credit cards at a time. Applying for a card results in hard inquiry from the credit card issuer which means that the individual might get penalized when a lender checks his or her credit and too many of them would lead to lowering the individual’s credit score. This can be avoided by spacing out new credit card applications by a few months up to a year.
VISA Credit Card V/s Master Credit Card
The bank you choose for your credit card is definitely important and perhaps the most important but when it comes to acceptance and the type of card you choose perhaps you might have to give it a run of analysis between VIsa and MasterCard. Bigger the name of banks such as Citi, HSBC, Maybank the more perks to expect but when you are looking for a good network or the added advantages you might want to take a look at the major distinguishing features of MasterCard and VISA credit cards.
Major Differences of VISA and MasterCards
Tiers or Levels of Benefits :VISA has two levels of reward credit cards which are popularly known as the VISA regulars and VISA Signature cards. Most of the regular ones come with extended purchase warranties, emergency helplines, and purchase based points rewards programs, discount and offers. The Signature cards come with extensive benefits such as dining and retail privileges, takaful coverage, travel insurance, air miles rewards programs and even round the clock and globe concierge service. You also have access to great places of entertainment such as golf clubs and even amusement parks, if that is your thing. MasterCard however, is a little different. It has a wide variety and infact has a 3 level benefit program for the plastic cards that they offer. It includes the base level which we are all acquainted with and is similar to VISA regular, but there is also a World card and World Elite card levels. World and World Elite is a division with similar privileges that is offered by Visa Signature cards.
MasterCard’s Price Protection Advantage :This is something simplistic but might sound a little confusing to some. In the case of circumstances where you buy a product and the price changes to a lower amount, Mastercard will cover the difference. However, it is essential that this is done by Visa cards to only under the discretion of the bank.
Mastercard and Visa Acceptance: The network of goods and services that both this card provides is almost the same. However, there are preferential differences. Also, MasterCard and Visa acceptance numbers are based on the country if you are traveling abroad. Lucky for most, both are now accepted everywhere, where credit cards are accepted.
But if you want to have an absolute assurance of acceptance, it is a good idea to own both, because you never know where Visa is accepted and Mastercard is not, especially if you are frequent traveller.
Credit Card Calculator
Credit card calculators are a useful internet tool that can help you arrive at the correct amount you will be required to pay to settle your credit card dues. Different calculators are available online that helps you plan your credit card payments well.
Read More On Credit Card Calculator: Credit Card Calculator
FAQs for Credit Cards
- What is a credit card and what is it used for?
A credit card is a form of card similar to an ATM card and is issued by a financial organization. This card is used by cardholders to buy goods and services on credit.
- What are the various credit cards that customers in Malaysia can avail?
Credit cards offered by banks in Malaysia fall in any of the following listed categories.
- Auto and fuel credit cards
- Travel cards
- Entertainment cards
- Cashback cards
- Credit cards for women
- Lifestyle cards
- Rewards cards
- Shopping cards
- Dining cards
- Groceries cards
- Utility cards
- Insurance cards
What are the most common features and benefits offered by credit cards in Malaysia?
Some of the most prominent features that almost all credit cards offer in Malaysia are-
- Cashback offers
- Low Interest Rates
- Balance Transfer Options
- Free cards for life
- Insurance coverage
- Rewards points
- Air Miles
- Fuel surcharge waivers
- Pre-approved loans on credit cards
- Flexi EMI option on retail purchases made
- Supplementary cards
How to avail a credit card in Malaysia?
You can get a credit card in Malaysia by filling in an application form. This form can be filled either online or by visiting any of the bank branches. Banks will ask you to submit certain KYC documents after which your credit card request will be approved. The approval also depends upon the credit history of customers.
What is the eligibility criteria for owning a credit card in Malaysia?
Customers who are above 21 years of age and are earning a regular income are eligible to obtain a credit card from any of the operating banks in Malaysia. Salary requirement is one criteria that differs for various banks and for different card types. Some credit cards are offered only to Malaysian nationals while others can be availed by expatriates too.
Also, banks tend to look at your credit history to deem you eligible for possessing a credit card.
Is there a minimum salary criteria for obtaining credit card in Malaysia?
In Malaysia, you can obtain a maximum of 2 credit cards if your annual income is equal to or less than RM 36,000. However, for customers with annual income of RM 36,000 and above there is no limit on the number of credit cards that can be obtained.
What are the interest rates on credit cards in Malaysia?
In Malaysia, almost all credit cards charge a rate of interest in the range of 13.5 – 17.5% per annum. Certain card issuers may have higher or lower rates than these. Generally, higher rate of interest is charged when there is irregularity in the payment of credit card bills whereas, rates are kept lower when credit card payments are made regularly.
What is the documentation required to apply for a credit card in Malaysia?
After you have zeroed down on the credit card that you wish to avail and the credit card issue, you can apply for the same. Following are the documents that are mostly needed by banks in Malaysia for furnishing credit cards to customers.
A copy of your MyKad (both sides), latest three-month payslips + latest three-month bank statements OR latest three-month EPF statements.
A copy of your MyKad (both sides) and latest Borang B/BE with LHDN acknowledgement.
Is there a late payment fee applicable on credit card bill payments?
Yes. Most banks charge customers a late payment fee which is equal to a specific percentage of the outstanding credit card bill, in case they fail to pay their bill on time. Credit card payments should be paid on time and late payments should therefore be avoided as much as possible.
Do supplementary cards charge a separate annual fee?
Depending upon the credit card provider and the credit card type, supplementary cards may or may not come with an annual fee.
Do supplementary cards offer the same features as primary credit cards?
Yes. Most supplementary credit cards in Malaysia offer the exact same features and benefits as those offered by primary cards. This however, is dependent solely on the credit card issuer.
What do reward points on credit cards offer?
Credit cards in Malaysia offer reward points which can be redeemed at a variety of stores and outlets. These rewards points differ in their type and redemption based on the bank that issues the credit card. Some examples of stores where reward points can be redeemed are petrol pumps, grocery stores departmental stores etc. The more a customer spends, the more are the reward points that get accumulated.
How do international cards help travelers in Malaysia?
Travelers can make the most amazing use of international cards since these cards come loaded with features and benefits that help lessen the hassle of staying in a foreign country. For example, many international credit cards offer superb airport lounge access, priority treatment at airports and foreign exchange facility which makes it easier for travelers to fly to another country.
Can I opt for Islamic banking credit cards in Malaysia?
Yes. Several banks in Malaysia offer Islamic banking credit cards too. These credit cards are based on the Sharia principle of Islamic banking and are meant for customers who wish to bank via Islamic banking laws. Some of the most prominent banks offering Islamic banking credit cards are Public Bank, AmIslamic, CIMB Islamic, RHB, Bank Rakyat etc.
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News About Credit Card
Cardholders need to start using PIN
To resolve the teething issues, the cardholder in Malaysia need to start using their PIN for completing a transaction. The migration to PIN-based cards is expected to complete within the next two months. The migration from signature based cards to PIN-based cards is being done so that economic efficiency and productivity is achieved. The Central Bank is also targeting to reduce the cheque transaction by half in 2020. The BNM has issued a framework to address the misrepresentations and to make sure the cost of accepting card payments is reasonable and fair.
18th January 2017
ABM wants bank customers to take replacement debit cards
Association of Banks in Malaysia (ABM) wants customers of various banks to collect their replacement cards from the bank branches. They cannot be mailed to cardholders like credit cards as debit card collection needs MyKad identification.
Banks have been informing customers to replace their old debit cards through many ways such as messages on ATM screens, SMS and emails, and advertisements in different media.
ABM has also mentioned that banks in Eastern Malaysia are stretching their hours of operation and are working on weekends to activate the new PIN-enabled cards. From July 1, 2017, transactions can be made in Malaysia only with cards that have a PIN.
23rd December 2016
Banks are urging cardholder to switch to PIN-enabled cards
Banks are urging all the cardholders to switch to new PIN-enabled cards at the earliest. Card payments without PIN will not be allowed in Malaysia. The main reason for this change was to align Malaysia with the global practices for card use and to improve the security of the cards. All the cards that support signature will be replaced with the new PIN-enabled cards. If you haven’t received the new cards, you should contact your credit or debit card issuer to issue them at the earliest. Using PIN is convenient, faster, and more secured when compared to using a signature.
21st December 2016
A fraction of credit cardholders declared bankrupt
Out of 3.6 million credit cardholders, only 1,022 have been declared bankrupt for failing to clear off the debts. The majority of them were aged 45 and above. 10 of them were between 21 and 30 years. Ministry has set up credit counseling and debt management agency to help people manage their finances properly. To stem out the problem of bankruptcy, Bank Negara has introduced several conditions to issue credit cards and to ensure that the credit card facility is given to those who are eligible. According to the guidelines, financial products are to be given out based on the eligibility to repay and without being burdened with excessive debts.
30th November 2016
Malaysian Banks to implement PIN for Credit Cards
In 2017, Malaysia would start executing the use of Personal Identification Number (PIN) to authorize any credit card transactions. The decision of implementing PIN for credit card transactions has been taken to protect credit card users from fraud. In the recent days, Malaysia has witnessed rise in the number of credit cards fraud. This shift from signature to use of PIN is an initiative taken by all banks across the world to protect credit card users from theft.
As set by Bank Negara, almost 39 million customers including credit card holders would get new PIN enabled card by January 2017. Already, this migration from signature card to PIN cards has been implemented in European countries like New Zealand, Canada, and Australia. Without having PIN, consumers cannot use their credit cards in those counties. However, banks in Malaysia need to educate consumers more about how to use 6 digit and 4 digit PINs before implementing this Personal Identification Number.
21st June 2016
PIN verification To Be Alternative for Credit & Debit card Signatures
Bank Negara Malaysia (BNM) has announced its plan of replacement of the signature-based identification system for payments through credit and debit cards with PIN or personal identification number enhance security, according to a report released by The Star.
The plan is already in action, and the target date for going completely dependent on PIN is January 2017. This also means that all the existing credit card holders will be receiving their new credit cards in batches. The existing number in Malaysia for credit card users is 8 million.
The remaining card users who use debit cards are 31 million in number in Malaysia. Will have to go to their own banks to receive their new cards in person. Hence, fraudsters no longer will be able to use the card if lost or stolen as long as the PIN is not known to the fraudulent party.
16th June 2016
GrabCar launched in Penang
Ride sharing app GrabCar launched in Penang. The payment can be made with cash and credit card. GrabCar is offering 2 free rides that are worth RM25 each for the users from George Town to Penang International Airport. Users can use the promo code- ‘Hellograbcar’ to avail the free ride. The fare begins at RM1 and the charges per kilometre is RM1.30.
The fare is not time-based, but a minimum payment of RM5 is charged for all GrabCar rides. The app features round-the-clock customer service and a panic button to call the nearest police operations centre. Location can also be shared via GPS.
Although there was increase in operating costs, it was mitigated with an increase in Net Income which stood at RM 14.1 Million. The profits prior to tax stood at RM 199.8 Million as compared to the pre-tax profit of RM 269.8 Million recorded one year ago.
31st May 2016
Malaysia’s household debt stands at RM1.03 trillion
Malaysia’s household debt stood at 89.1% of the gross domestic product. Deputy Finance Minister, Datuk Chua Tee Yong said that 62.6% of the household debt remained in long term loan from banks and nonbanking financial institutions for acquisition of property and financial investment. He also said that several measures were implemented to curb the rise in the household debt, which decreased the debt growth to 6.5%.
He said that the credit card debt was not the main reason why individuals went bankrupt. He said that the banks will approve applications for credit cards who qualify and the approval rate is 50% - 60%. He is keen on educating individuals on spending habits and financial management to keep the household debt low.
31st May 2016
Cash test card unveiled by BNM for the visually impaired
Bank Negara Malaysia will be soon distributing Ringgit Cash Test Cards with the help of Welfare Development to allow visually impaired to identify denominations of banknotes and coins. The card is made of plastic and is designed with braille markings to denote denominations.
The device was unveiled at the BNM awareness programme for insurance companies and banks. The programme was held in order to enhance awareness on the needs of people with disability. The programme was promoted for companies to provide disabled-friendly services and facilities.
18th May 2016
With Visa Checkout you can shop faster online
Around 67% of Malaysians shop online as per the Visa Consumer Payment Attitudes Study 2015. But as per the study conducted by eCommerce Monitor 2015, 81% of the online shoppers have abandoned a purchased because the payment process took too long. Visa has offered Visa Checkout in Malaysia which will enable the user to quicken the process of online payment.
Instead of using the 16 digit card number, the user will have to use the username and password and select the card, either Visa credit or debit card, and complete the transaction. The steps to make the payment will be reduced and making the online payment faster hence improving digital shopping experience. This will significantly increase technology’s part in Malaysians’ everyday life. At least 100 merchants are expected to engage in the Visa Checkout by the end of 2016. 13 banks are on board with this service. Maybank was the first to enrol for this service.
22nd March 2016