KUALA LUMPUR, Malaysia -- More than 11 million ATM cardholders will switch to a new chip-based card next year and pay an annual fee of 8 Malaysian ringgits (about $2.10 U.S.) for each card.
According to a report in The Star, the new Payment Multipurpose Bank Card will be issued in the first quarter of 2003 and will include multiple payment applications. Apart from standard ATM transactions, the card can also be used for electronic cash payment via either e-debit or e-purse.
It will also contain information such as card validity or cardholder's identity, so that any counterfeit or stolen cards can be identified quickly.
Apart from the annual fee, customers will pay RM1 (about 26 cents U.S.) for each inter-bank withdrawal through the new card, much as they do with their current ATM cards.
Datuk Amirsham A. Aziz, chairman of Malaysian Electronic Payment System (MEPS), said that all ATM cardholders were expected to convert to the new card by April.
"Arrangements have been made to ensure that existing cardholders will be able to change their cards with as little hassle as possible. In the meantime, cardholders may continue to use their current ATM cards for transactions until further notice from their banks," Amirsham said.
To date, more than 2,000 retailers and merchants have agreed to accept the new card for direct debit purchases at the point-of-sale.
The e-purse, also known as the MEPS Cash, is electronic monetary value stored in the card for the convenience of low value payments. The purchase amount will be deducted directly from the stored value.
Card holders will also be able to "top up" the e-purse at any of the 3,700 ATMs linked to MEPS or at reload terminals at retail stores, according to The Star.
Card fraud has been a problem in Malaysia. According to an earlier report in The Star, Malaysia lost more than RM40 million (approximately $10.5 million) to ATM and credit card fraud in 2001.
