Tuesday, December 22nd, 2009 2,417 views
So it’s confirmed that the credit card holder need to pay RM50 for the tax yearly? The answer is “Yes“.
Alright I’m gonna cancel all of my Credit Cards and keep 2 cards. I have 6 Credit Cards in total, so now I will keep only the most frequent use card in case of emergency and I would say credit card is useful to me as I do not bring excessive cash with me because feel more secure that way. Moreover, it’s actually very convenient as we may make payment by installment using the credit card. Furthermore we could collect points and enjoy discounts that normally given to credit card to attract customer to use that card.
What about you? How many cards do you have? Do you plan to cancel all your credit cards or just pay RM50 because the amount is not significant to you? Potong your credit card or not? Haha.
I’m canceling my Citibank AirAsia card. If you want to cancel Citibank Credit Card coz do not want to pay RM50 tax act fast, download the form here and send it to them to process the cancellation.
Credit card tax for existing users to start on anniversary date
By CHAN LI LEEN and JOSHUA FOONG
KUALA LUMPUR: Applicants issued with new credit and charge cards next year will have to pay the RM50 service tax upfront.
For existing card holders, the charge will be imposed on the anniversary date of cards.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who confirmed this with The Star yesterday, said the Government would impose the service tax for credit and charge cards from next year.
“Existing cardholders will only be charged the service tax through their issuing banks upon the aniversary date of the card.
“For example, if the card’s anniversary date is in January, then you pay the tax in January. But if the date is in April, then you only pay the tax in April,” he added.
The minister’s clarification puts to rest nagging doubts among the millions of credit card holders in the country who have been raising queries since Prime Minister Datuk Seri Najib Tun Razak announced the new tax when he unveiled Budget 2010 in October.
Najib, who is also the Finance Minister, had said that a RM50 service tax for principal credit and charge cards and a RM25 for supplementary cards would be imposed from January.
This has led to card holders asking if the charges will be imposed from Jan 1 or on the anniversary dates of the cards, which are usually issued for a three-year period.
Those holding a string of cards were most eager to know before deciding to cancel some of their accounts.
A check with the customer service departments of several commercial banks showed that they had yet to receive any definite confirmation.
Some banks said they were still awaiting for a directive from Bank Negara, while others think the tax would be imposed on the anniversary dates.
A third group of banks has also offered to absorb the tax for the cardholders, on condition a certain amount of money was spent within a certain timeframe.
Cardholder Y.L. Sim, who called up the bank to cancel his credit card, said the bank advised him “not to be hasty.”
“The officer said that they had yet to receive a formal directive from Bank Negara (on when to impose the tax). But I was worried as the New Year was nearing,” he said.
Deputy Finance Minister Datuk Chor Chee Heung, when contacted, advised cardholders to plan accordingly, saying holding two credit cards was enough.
““Even I intend to hold only two credit cards,” he added.
He urged those who had large outstanding credit card debts to stop using the cards and meet the issuing banks to work out a repayment mechanism.
There are some 11 million credit cards circulating in the country.
Source : TheStar
Posted in News | 2 Comments »
Wednesday, July 2nd, 2008 4,078 views
Are you one of the Credit Card user who always perform prompt payment for the past 12months? Then you are safe and you will save yourself some interest rate too! I’m one of them. Haha, so I get to enjoy the 20 days free interest and low interest rate?
But what’s the point of doing that? Ppl use Credit Card because the no money or want to use future money and now they implement this and of the current petrol and price hike? Are you happy with the new Credit Card Interest Structure? For me, I use Credit Card for convenient sick and sometimes got offer for card member too and to collect points too of coz =)
What say you? Are you paying extra because of this new credit card interest structure?
PETALING JAYA: From Tuesday, credit card holders who make the minimum or partial repayment on their outstanding amount monthly would no longer enjoy the 20-day interest-free period for new retail transactions.
Those who settle their credit card outstanding amount in full every month will continue to be granted the interest-free period.
Bank Negara confirmed that the ruling took effect Tuesday as part of its effort to promote the use of credit cards as a payment instrument, and to encourage prudent spending and good financial discipline.
A year ago, Bank Negara took the initial step, announcing a new interest rate scheme for credit card users. Credit card issuers then began tracking the repayment behaviour of their cardholders from July 1 last year.
In a statement Tuesday Bank Negara said: “More than half the cardholders pay at least the minimum amount due and roll over the remaining balance.”
For credit card users with a good record of settling their credit card balances due each month promptly for 12 consecutive months, the finance charge will be reduced from the maximum of 18% a year to not more than 15%, it added.
As at the end of last year, one third of the 2.7 million credit card holders in the country settled their outstanding amount in full every month.
Bank Negara said banks and credit card issuers had already begun notifying their customers on the matter.
A spokesman for Public Bank Bhd said the bank had notified its credit card holders on the scheme in June and July last year and again in April, this year.
“We gave them ample notice because we needed to track their 12-month repayment behaviour history,” she said, adding that the bank had 900,000 credit card holders.
source : TheStar
Some useful information forwarded from my friend and it’s a good read. Just click on the image to enlarge if you can’t read.
CitiBank Card Member:
Citibank credit cards are designed with benefits that allow you to enjoy and live life to its fullest. As such, effective 1 June 2008, Citibank will introduce a new Tiered Interest Rate Structure on retail purchases in line with the latest guidelines by Bank Negara Malaysia.
This Structure has been introduced to inculcate prudent financial management among our credit cardmembers. Cardmembers who demonstrate good track record in settling at least their minimum payment promptly will enjoy reduced finance charges.
The table below illustrates the interest rate tiers and how you can enjoy the lower rates:
15% per annum – Cardmembers with prompt payments for 12 consecutive months.
17% per annum – Cardmember have to make 10 or 11 times prompt payments in the last 12 months.
18% per annum – Cardmembers will be charged this rate if they have only made 9 or less prompt payments in the last 12 months.
Are there any other changes?
Yes, there are changes on the Late Payment Charges and Interest Free Period.
• Late Payment Charges
Cardmembers have to pay a minimum of RM10 or 0.5% of the total outstanding balance as at statement date, up to a maximum of RM100.
• Interest Free Period
The Interest Free Period for retail transactions will be 20 days from the statement date and is applicable only for cardmember who pay in full on or before the payment due date. If cardmember opts to pay partial or minimum payment, finance charges for retail transactions will be calculated from the day the transactions are posted to the card account.
FAQ
Frequently Asked Questions From CitiBank
1. By July 2008, I would have been making all my payments on time for the period July 2007 – June 2008 and have never been late even once, what will be the finance charge in my July 2008 statement?
As you have been paying promptly every month (either by clearing your balances or just the minimum payment due) you will enjoy a finance charge of 15% per annum.
The New Interest Rate Structure has been designed to reward credit cardmembers who demonstrate a good track record of paying their credit card bills promptly each month.
2. Six months ago, I made a late payment. In this case, what will be the finance charge reflected in my upcoming statement?
If you have made one late payment in the last 12 months, you will enjoy a finance charge of 17% per annum.
The finance charge of 15% per annum will only apply if you consistently settle your balances or make the minimum payment due on or before the payment due date for 12 consecutive months.
3. I think I may have missed my credit card payments for one or two months in the last 12 months. What will be the finance charge rate reflected in my next credit card statement?
You will enjoy a finance charge rate of 17% per annum. This finance charge is applicable for a maximum of 2 late payments made in the last 12 months.
However, if you consistently pay on time before the payment due date in the next 12 months, your interest rate will be changed to 15% per annum. Credit cardmembers who demonstrate good financial discipline and prudent financial management will be suitably rewarded.
The credit card is a payment tool. Using credit cards wisely involves choosing a card that best suits your lifestyle, keeping track of how much you spend and how much you pay. It is advisable that you treat your credit card as how you would treat a bank loan of the same amount. As such, you must ensure that you pay your bills promptly every month, to avoid higher finance charges.
4. I have been making all my payments on time except for the last 3 months, what is the finance charge that I have to pay now?
We understand that you may have had some difficulties in paying your balances promptly in the last three months. Due to this, your finance charge rate will be 18% per annum.
However, if you consistently pay on time before the payment due date in the next 12 months, this rate will be changed to 15% per annum. This would be your reward for demonstrating good financial management over the course of 12 months.
To help you achieve this, review and organize your finances as well as keep a budget. A budget is a powerful tool to help you achieve financial goals. It can help you get control of your finances, keep out of financial trouble, become a smarter consumer, and pave the way to a secure future.
5. How long does the cheque take to be processed from the point that the cheque is received by your bank?
Between 2 to 3 working days.
6. When do you recommend me to make full payment to enjoy the 20 days interest free period?
If you are making payments online or GIRO, please do so at least 1 day before the payment due date.
If you are planning to drop the cheque at any of our branches or cheque drop box, please do so at least 2 working days from the payment due date.
If you are paying by mailing the cheque, do send it at least 1 week before the payment due date.
If you are making cash payment, you may do so latest by the payment due date.
Posted in Announcement | 5 Comments »
Wednesday, June 25th, 2008 2,993 views
Isn’t this ridiculous? Few weeks back they increase Petrol Price to 2.70 a liter, now they are telling Malaysian Petrol Station only accept Cash but not credit card? It will be a lot burden to the public and trouble cause? I myself use Credit Card to pump petrol because of convenience and want to collect points for the use of Credit Card but now,
Petroleum Dealers Association of Malaysia, had sent out a notice to 3,200 members nationwide advising them to refuse all cards.
So when we need to pump RM100 ++ petrol we have to bring enough cash and if not we have to go thru all the trouble to look for ATM, withdraw money and endanger ourselves after we withdraw the money from the robber? What about after 12am and most of the ATM close? We have to wait till tomorrow? That’s s*ck!
Why is this happening? So many bad things happened to Malaysia? Malaysia Boleh?
Credit card refusal draws ire
GEORGE TOWN: Motorists here are fuming over the sudden move by petrol stations here as well as Kedah and Perlis to refuse payment by credit and fleet cards.
The decision was made following a meeting in Butterworth at 3.30pm yesterday to discuss a circular by the Petroleum Dealers Association of Malaysia, which had sent out a notice to 3,200 members nationwide advising them to refuse all cards.
More than 400 stations in the northern region decided to enforce the move and started refusing the payment from midnight.
In the meeting, Mobil Stations Malaysia deputy president Roslan Jamaludin said petrol station operators could no longer shoulder the burden of the card charges.
“We lose nearly 50% of our profit to card transactions. How are we going to cut costs if everyone uses cards for their purchase?” he asked.
He added that operators agreed to this “business decision” for “long-term survival” and to highlight their plight to the Government.
Motorist Zafran Zakri Mohamad, 37, said the petrol station operators should not be heartless.
“We are struggling to cope with the recent increase in fuel price. We thought we could depend on credit cards when we run out of cash.
“But now we cannot not even use credit cards. And to impose such a ruling at a time of month when most people are running out of cash is really unacceptable,” said an irate Zafran.
Car rental agent Kintan Natasuri Aziz, 40, who uses the fleet card, said the new ruling would pose much inconvenience to him, as he has to travel outstation to send and pick up cars for rental.
“We also do not carry much cash,” he said.
Another motorist, Maisarah Khairul Anuar, 27, said that if petrol station operators were unhappy with the interest imposed by the banks then they should take it up with banks.
“They should not make consumers suffer,” she said.
Ryan Tang, 31, a graphic designer, said it was not right to immediately implement such decision without giving prior notice to customers.
“What if we run out of petrol after midnight when the ATMs are closed and we cannot withdraw money?” said Tang.
source: TheStar
Drivers fume
GEORGE TOWN: Motorists throughout the country were left fuming and confused on Tuesday, all because of the push by petrol station owners to ensure that their profit margins are maintained.
> 400 petrol stations in the northern region decided to stop accepting payments by credit card by today,
> Motorists are angry that they have to pay by cash, especially when they are now paying more for their fuel,
> Chaos broke out in several towns in Sabah and Sarawak as panicked vehicle owners rushed to petrol stations to fill up after receiving irresponsible SMSes that petrol stations were closing for three days,
> Vehicle owners in the peninsula were also worried after receiving similar untrue SMSes of petrol stations closing.
source : TheStar
Posted in Blog | No Comments »
