KUALA LUMPUR, Sept 28 – Amidst rising concerns and media reports about the forthcoming transaction fees for DuitNow QR payments, Payments Network Malaysia Sdn Bhd (PayNet) has stepped forward to set the record straight.
Key Highlights:
- Misreported Information: PayNet refutes claims made by several online news outlets, labeling them as “inaccurate.”
- Merchant Discount Rate (MDR): Currently, while debit and credit card payments are subject to MDR, QR payments enjoy an exemption. This will change from November 1, 2023, as the MDR waiver for DuitNow QR payments will be lifted.
- Peer-to-Peer Transfers: The reported RM0.50 fee for transactions over RM5,000 pertains to transfers between personal QR codes, not merchant payments.
- MDR Allocation: The accumulated MDR will be split between PayNet and associated banks or third-party acquirers to cover network maintenance and other associated costs.
- Historical Context: The MDR was initially waived in 2019 to promote QR payment adoption and was extended due to the Covid-19 pandemic.
In a detailed statement released today, PayNet clarified the nature of the fees associated with DuitNow QR payments. The company emphasized the distinction between e-payments made to dealers, which are subject to the Merchant Discount Rate (MDR), and peer-to-peer fund transfers. The latter, involving transfers from one personal QR to another, incurs a RM0.50 fee for amounts exceeding RM5,000.
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The MDR, which was initially waived as an incentive during the QR payment’s introduction in 2019, was extended as a relief measure during the Covid-19 crisis. However, this waiver is set to end on November 1, 2023. PayNet highlighted that the MDR is not a new or additional fee but a return to the original structure. A portion of the MDR collected will be set aside in a reserve fund, aimed at incentivizing acquirers not to impose the MDR on small-scale traders.
Addressing concerns that the MDR costs might be transferred to consumers, PayNet pointed out that credit and debit card purchases are already subject to MDR. The company anticipates that product and service prices will remain consistent, even after the MDR is applied to DuitNow QR purchases.
Furthermore, PayNet debunked the notion that cash transactions are free of cost. Citing a 2018 study by Roubini Thoughtlab, the company highlighted that the benefits of non-cash transactions to businesses far outweigh the costs, estimating a net benefit of around US$4.2 billion (RM19.7 billion) over 15 years due to e-payment-related savings.
PayNet’s statement underscores the importance of accurate information, especially when discussing the intricacies of the digital payment industry in the Asia Pacific. As the region continues to embrace digital transformation, clarity and transparency remain paramount.
