Charge on DuitNow QR payments will burden SME sector, says group

KUALA LUMPUR: Small and medium enterprises (SMEs) are taken aback by the merchant discount rate (MDR) charge imposed on merchants for payments received via DuitNow. The Small and Medium Enterprises Association (Samenta) president, Datuk William Ng, expressed surprise at the arbitrary imposition of a charge of up to 0.5% by Payments Network Malaysia Sdn Bhd (PayNet) and the acquiring banks. While acknowledging that the MDR or commission was mentioned in the fine print, Ng raised concerns about the lack of choice for merchants who have invested resources to encourage customers to pay via a single QR code.

DuitNow is essentially a monopoly enforced by PayNet, and Ng feels that the move to impose MDR feels like a betrayal. Samenta urged PayNet and acquiring banks to reconsider the proposed rates and charge a lower rate than the 0.25% and 0.5%. Ng emphasized the benefits of going cashless for everyone, including banks, as it reduces risks and costs associated with handling cash. He further warned that if the rates are not reconsidered, merchants may only accept payments above a certain amount or return to accepting only cash.

In a statement, PayNet confirmed that a transaction fee will be charged to merchants for payments received via the DuitNow QR code platform starting from November 1. The statement clarified the distinction between the MDR and the 50 sen fee for transactions exceeding RM5,000. Debit and credit card payments are subject to MDR, while QR payments were previously exempt. However, starting from November 1, the MDR waiver for DuitNow QR payments will be lifted, according to PayNet.