KUALA LUMPUR, Malaysia -- The Malaysian Electronic Payment System Sdn Bhd (MEPS) said the 8 ringgits annual fee (about $2.10 U.S.) charged for its new chip-based Bankcard will not be revenue for banks, but was a "small contribution" to the investment involved in upgrading to chip, according to a report in The Star.
MEPS managing director Datuk Mohd Hata Robani said in a statement that the amount of money spent on issuing the Bankcard was significant, with each bank contributing between RM7million (about $1.8 million U.S.) and RM40 million (about $10.5 million U.S.) to upgrade its ATMs and network infrastructure to support the chip-based card.
He said the fee would be used to build stronger security in the chip, as well as to help offset other infrastructure costs, such as upgrading more than 3,700 ATMs. All ATM upgrades will include the capability to upload e-purse funds stored in the chip, he said.
The new cards also will include an e-debit function, which will allow card holders to pay for goods, services and utility bills.
According to The Star, more than 11 million card holders will receive the new card in 2003. The card is being adopted to help reduce card fraud, which has been a serious problem in Malaysia. The country lost more than RM40 million (approximately $10.5 million) to ATM and credit card fraud in 2001.
