KUALA LUMPUR (Sept 28): Payments Network Malaysia Sdn Bhd (PayNet), the operator of DuitNow QR — Malaysia’s interoperable QR standard that allows the payment and receipt of funds from any participating bank and eWallet with just one QR code — has provided clarification on the implementation of transaction fees for DuitNow QR payments and transfers made with credit cards.

PayNet’s statement, issued Thursday, was in response to what it said were "inaccurate" media reports, which had lumped two different types of e-payments as one and the same.

One actually refers to QR payments made by customers to merchants, which typically incurs a merchant discount rate (MDR) based on a percentage of the transaction value, but which has been waived since 2019 — initially to incentivize adoption of the QR payments during its introductory period, and later extended due to the Covid-19 outbreak. However, starting from Oct 1, 2023, the MDR waiver for DuitNow QR payments will be uplifted.

"It is neither a new nor an additional fee. Instead, Oct 1, 2023 is the end of the MDR waiver that was supposed to have been done over nine months ago," said PayNet.

The other e-payment is the type using debit and credit cards, which are separate and already subject to MDRs.

It also said the 50 sen fee mentioned in the reports are for fund transfers above RM5,000 using personal DuitNow QR codes, or peer-to-peer fund transfers, and not payments to merchants.

"It is inaccurate to state that the 50 sen charge applies to payments made to merchants. It is also inaccurate to state that MDRs are charged for funds transfers using personal QRs.

"This (type of transfers) is completely unrelated to the first-mentioned QR payments to a merchant and under no circumstances will both fees (the 50 sen fee and the MDR) be imposed for the same transaction," Paynet said.

As for the MDR on QR payments to merchants, PayNet said the collected MDR will be shared between PayNet, the relevant banks and third-party acquirers, to cover network maintenance costs and expenses incurred by banks and acquirers for onboarding merchants to enjoy this service.

A reserve fund will also be established with the MDR collected by PayNet to incentivise acquirers not to charge smaller businesses.

"While PayNet is not in a position to dictate what the market charges merchants, several banks and third-party acquirers intend to either continue to defer imposing MDR or absorb it for smaller businesses. In this respect, merchants should check with their bank or third-party acquirer to confirm this matter," it said.

PayNet also clarified that the imposition of MDRs on DuitNow QR payments will not result in increased prices of goods and services for consumers, as credit and debit card purchases already attract MDRs and that do not affect pricing.

It also refuted the belief that transacting in cash is cost-free, citing a 2018 study by Roubini Thoughtlab that outlined the substantial long-term benefits of going cashless, including increased business savings, reduced paperwork and improved efficiency in e-payment processes, which translated into a cumulative net benefit of US$4.2 billion (RM19.7 billion) between 2017 and 2032.

“PayNet is compelled to issue this statement as any discussion or dialogue on this matter should be premised on accurate, correct and fully informed understanding of the facts and how the digital payment industry actually operates,” it added.