Sunday, June 29, 2008

Banks can profit by lowering credit card charge Shahrir:


JOHOR BARU: Banks will still profit despite lowering credit card commissions because the number of people using the facility at petrol stations would increase.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said he was hoping for cooperation from the banks to lower the commission charges.

He said the move would assist both the banks and the petrol station dealers in the long run.

Shahrir said that when the cost of goods rose, there would be an increase in the number of people who used their credit cards instead of cash.

“That means that banks will be receiving more commissions too, and the banks will be back where they were. They won’t lose money,” he told reporters at a press conference on Sunday after meeting party members.

At present, petrol stations pay a 1% credit card charge to banks on every transaction, but the Government is negotiating with the banks to reduce that to 0.5%.

Shahrir said that negotiations with the banks were underway and he would meet them again next week.

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