STRATEGIC PARTNERS
March 2, 2003
KUALA LUMPUR, Malaysia -- Malaysia expects to complete its conversion to Bankcard, a new chip-based multipurpose card that will replace magnetic strip ATM cards nationwide, by the end of June.
According to a report in The Star, Malaysian Electronic Payment System (MEPS) chairman Datuk Amirsham A. Aziz said domestic financial institutions were on the fast track to card conversion and all ATMs accepting magnetic strip cards would be disabled in early July.
"We strongly encourage customers to quickly convert their cards before the deadline to reduce their anxieties about fraud as well as enjoy the many other conveniences," Amirsham said.
Bankcard offers access to three payment applications -- the ATM, electronic debit point-of-sale (e-debit) and electronic storage of monetary value (e-purse).
The full implementation of the Bankcard will include issuance of chip-based cards, upgrading of all ATMs to accept chip-based cards and e-purse loading, network infrastructure upgrade and the acquisition of merchants and retailers accepting e-debit and e-purse (MEPS Cash).
Amirsham told reporters after the official launch of Bankcard by 12 domestic anchor banks in Kuala Lumpur on Feb. 29 that each bank would undertake their own programs to inform customers on conversion procedures.
More than 3,800 ATMs nationwide have been fully upgraded to facilitate total chip-based ATM transactions, according to Amirsham. To date, 974 ATMs allow cash loading and more than 3,000 merchants are equipped for Bankcard transactions.
Amirsham said that merchants accepting the Bankcard will display Bankcard and MEPS Cash logos; the logos will also be displayed at ATMs.
He said banks will consider using Bankcard's enhanced MEPS Cash as another alternative for payment at toll expressways. "In fact we are targeting end-June for toll payment via Bankcard," he said.
Malayan Banking Bhd (Maybank) and Mayban Finance Bhd are waiving the annual card service fee for customers who upgrade their existing magnetic strip cards to the new chip-based card.
Maybank President and Chief Executive Datuk Amirsham A Aziz said in a statement that the annual service fee waiver would benefit an estimated 3.7 million Maybank and Mayban Finance ATM cardholders as well as new account holders.
Amirsham said customers who had previously paid for the new card when they opened a new account or requested a conversion would be reimbursed.
He also said that beginning April 1, Maybank and Mayban Finance would introduce a "pay-as-you-use" transaction fee scheme for ATM cash withdrawals, in which customers will pay no fees for their first four cash withdrawals each month at any Maybank and Mayban Finance ATM. From the fifth ATM withdrawal, a fee of 50 sen per cash withdrawal will be charged.
Amirsham said all Maybank and Mayban Finance ATMs have upgraded for chip-based ATM transactions. Presently, Maybank's chip card is accepted at more than 2,500 merchants for e-debit transactions and 500 merchants for MEPS Cash transactions.
Apart from Maybank, other anchor banks involved with the conversion of chip-based cards have yet to announce whether they would impose any charges.
An industry player told the Star, "I believe many prefer to wait and see (the outcome from) the move made by Maybank, before making any commitment."
Bumiputra Commerce Bank Bhd (BCB), which introduced its chip-based ATM cards last May, does not charge its customers for an upgrade to the chip-based cards.
BCB aims to replace the magnetic stripe ATM cards with the chip-based Bankcardfor its 1.7 million active users by the end of June. The bank has already issued more than 61,000 Bankcards to its new and existing customers.
More than 98 percent of the ATMs in the Malaysian Electronic Payment System (MEPS) network are chip-ready.
