'Credit card charges too hefty'

2008/07/06

'Credit card charges too hefty'
By : Veena Babulal

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IPOH: Ten days after the announcement of talks to resolve the issue of credit card charges, petrol station operators are still waiting for the good news.

"Many people are using credit cards, and it's becoming increasingly hard for petrol dealers to pay the credit card charges," said Perak Petrol Dealers' Association president Ng Bee Keong.

While operators benefited from the increased commission rates for petrol and diesel, the savings could not cover fees charged by credit card companies, he said at the association's annual general meeting here yesterday.

On June 26, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said that the ministry was in discussion with banks to reduce the one per cent charge for every transaction to 0.5 per cent, adding that matters were expected to be resolved by this week.

Currently, petrol dealers and fuel companies jointly pay credit card charges, ranging between 0.7 per cent and 1.2 per cent for every transaction.

Following the "cash only" advisory by Petroleum Dealers Association, which led to many stations refusing credit cards on June 24, the ministry announced an increase of commission rates from 9.5 sen to 12.19 sen per litre for petrol and 4.5 to seven sen per litre for diesel, effective June 25.

Shahrir also announced that petrol stations, except those along highways, would operate from 6am to midnight from July 1, and that dealers who preferred to be open round-the-clock could apply to do so.