I heard from the radio this morning that the Government is planning to abolished the Credit Card RM50 Service Tax by 2013. This might due to the fact that this service tax failed to reduced debt. You can read more here.
This is good news for all credit card holders. However, there's another bad news for consumer as it was said that the Goods and Services Tax (GST) will be implemented when the Credit Card Service Tax is abolished.
I guess we still need to pay tax one way or another. Well, the Credit Card Service Tax doesn't seems so bad after all compared to the GST as there is no limit on the amount to be paid in GST while Credit Card Service Tax is fixed at RM50.
So which one you think is better in terms of its effectiveness in reducing debt and its burden on us all?
18 April 2011
Card holders can set ‘trigger amount’ for SMS alert on usage
PETALING JAYA: Credit card holders will be allowed to set a preferred threshold amount for an SMS alert to be triggered, said the Association of Banks Malaysia (ABM).
Its executive director Chuah Mei Lin said card issuers, who would send out the SMS alert, were mindful that customers should be given the benefit of choice.
“Only if they fail to set their preferred threshold will the transaction alert be based on the default amount set by the card issuer,” she said.
She also assured card holders that there would be no charges to receive nor reply the SMS alert and encouraged them to ensure that their contact numbers were up-to-date.
She said an SMS alert would be sent for transactions made at the point of sale, online purchases, withdrawals or cash advances, and mail and telephone orders.
Chuah was responding to a statement by Bank Negara that transaction alerts via SMS would be issued by Jan 1 next year in a bid to curb credit card fraud.
Card holders could then respond to the SMS and call the bank to cancel or alert police if the transaction was not made by them.
This came about after the arrest of seven postmen by police in connection with the interception of letters containing credit cards.
Chuah said most card issuers used courier services to deliver credit cards.
“All credit card holders are required to call their respective banks in order to activate their cards before transactions can be made,” she said, adding that the SMS alert would supplement existing fraud monitoring systems by card issuers.
National Cards Group chairman Vince Au Yoong said the SMS alerts would be sent out if a transaction amount crossed a set threshold.
“For example, if a customer deviates from his usual spending behaviour that is suspicious to his bank's fraud monitoring system, an alert will be triggered,” he said.
Au Yoong added that lost or stolen cards and online transactions were the two most frequent fraud cases recorded in the industry.
He said the Jan 1 deadline set by Bank Negara was necessary as it would take time to implement the SMS alert system.
Source: The Star Online
Its executive director Chuah Mei Lin said card issuers, who would send out the SMS alert, were mindful that customers should be given the benefit of choice.
“Only if they fail to set their preferred threshold will the transaction alert be based on the default amount set by the card issuer,” she said.
She also assured card holders that there would be no charges to receive nor reply the SMS alert and encouraged them to ensure that their contact numbers were up-to-date.
She said an SMS alert would be sent for transactions made at the point of sale, online purchases, withdrawals or cash advances, and mail and telephone orders.
Chuah was responding to a statement by Bank Negara that transaction alerts via SMS would be issued by Jan 1 next year in a bid to curb credit card fraud.
Card holders could then respond to the SMS and call the bank to cancel or alert police if the transaction was not made by them.
This came about after the arrest of seven postmen by police in connection with the interception of letters containing credit cards.
Chuah said most card issuers used courier services to deliver credit cards.
“All credit card holders are required to call their respective banks in order to activate their cards before transactions can be made,” she said, adding that the SMS alert would supplement existing fraud monitoring systems by card issuers.
National Cards Group chairman Vince Au Yoong said the SMS alerts would be sent out if a transaction amount crossed a set threshold.
“For example, if a customer deviates from his usual spending behaviour that is suspicious to his bank's fraud monitoring system, an alert will be triggered,” he said.
Au Yoong added that lost or stolen cards and online transactions were the two most frequent fraud cases recorded in the industry.
He said the Jan 1 deadline set by Bank Negara was necessary as it would take time to implement the SMS alert system.
Source: The Star Online
15 April 2011
Banks to send SMS queries to curb fraud
KUALA LUMPUR: Banks will issue transaction alerts via short messaging service by Jan 1, 2012 in a bid to curb credit card fraud.
An statement from Bank Negara Malaysia said card holders could respond to the SMS after a transaction was performed.
The statement yesterday said action was promptly taken through a joint effort of credit card issuers and various law enforcement agencies to nab the parties involved following a recent case of fraud involving credit cards.
“Credit card issuers will continuously take the necessary measures in ensuring that the integrity and safety of credit cards are maintained,” the statement said.
It added additional enhancements to security features including SMS alerts would be sent by card issuers for their cardholders after transactions are performed.
This came about after the arrest of seven postmen by the police.
On Tuesday, Kuala Lumpur police deputy chief Datuk Amar Singh Ishar Singh said seven postmen were among 13 people detained by the police in connection with the interception of letters containing credit cards.
“Our investigations revealed that a syndicate used the postmen to intercept credit cards for a fee of between RM50 and RM100 for each successful interception,” he said.
In an immediate reaction, Fomca president Datuk Marimuthu Nadason said action to curb credit card fraud should be taken immediately rather than wait until next year.
“Why wait? Now, even postmen are involved in intercepting new credit cards,” he said.
He added that he was disappointed with credit card companies as they were becoming complacent.
“They must take responsibility in ensuring the security of the credit cards,” he said.
These companies, he said, should also look into sending the new credit cards to the nearest bank branches for consumers to pick them up personally instead of mailing them.
Card holder Vanila Pakirisamy, 32, applauded the move by Bank Negara but said an option should be given to customers if they wanted such a service.
“It will depend on how often and how fast the SMS is sent to us. Some people may think it will be a bother to receive an SMS for every transaction,” she said.
Vanila, a teacher, said cardholders should also take their own precautionary measures.
“They should check their card every time they pay, especially when the card is taken away from them, like in restaurants,” she said.
Another card holder, Dewgem Yen Qai Yin, 26, a magazine editor, said the move was a good one but questioned if consumers would need to pay for these transaction alerts.
“I just hope that before they implement the move, they will do a thorough research on the matter. It is no use using short-cuts without thinking about possible harmful consequences,” she said.
Source: The Star Online
An statement from Bank Negara Malaysia said card holders could respond to the SMS after a transaction was performed.
The statement yesterday said action was promptly taken through a joint effort of credit card issuers and various law enforcement agencies to nab the parties involved following a recent case of fraud involving credit cards.
“Credit card issuers will continuously take the necessary measures in ensuring that the integrity and safety of credit cards are maintained,” the statement said.
It added additional enhancements to security features including SMS alerts would be sent by card issuers for their cardholders after transactions are performed.
This came about after the arrest of seven postmen by the police.
On Tuesday, Kuala Lumpur police deputy chief Datuk Amar Singh Ishar Singh said seven postmen were among 13 people detained by the police in connection with the interception of letters containing credit cards.
“Our investigations revealed that a syndicate used the postmen to intercept credit cards for a fee of between RM50 and RM100 for each successful interception,” he said.
In an immediate reaction, Fomca president Datuk Marimuthu Nadason said action to curb credit card fraud should be taken immediately rather than wait until next year.
“Why wait? Now, even postmen are involved in intercepting new credit cards,” he said.
He added that he was disappointed with credit card companies as they were becoming complacent.
“They must take responsibility in ensuring the security of the credit cards,” he said.
These companies, he said, should also look into sending the new credit cards to the nearest bank branches for consumers to pick them up personally instead of mailing them.
Card holder Vanila Pakirisamy, 32, applauded the move by Bank Negara but said an option should be given to customers if they wanted such a service.
“It will depend on how often and how fast the SMS is sent to us. Some people may think it will be a bother to receive an SMS for every transaction,” she said.
Vanila, a teacher, said cardholders should also take their own precautionary measures.
“They should check their card every time they pay, especially when the card is taken away from them, like in restaurants,” she said.
Another card holder, Dewgem Yen Qai Yin, 26, a magazine editor, said the move was a good one but questioned if consumers would need to pay for these transaction alerts.
“I just hope that before they implement the move, they will do a thorough research on the matter. It is no use using short-cuts without thinking about possible harmful consequences,” she said.
Source: The Star Online
14 April 2011
Seven postmen among 13 held for credit card fraud
KUALA LUMPUR, April 12 —Police have detained 13 people, including seven postmen, in connection with credit card interception and fraud totalling about RM1 million. The suspects, aged between 25 and 40, were arrested at separated locations in the Klang Valley between April 1 and 9. A multi-purpose vehicle, mobile phones and envelopes containing credit cards were seized from the suspects. Three of the suspects are women. Kuala Lumpur police deputy chief Datuk Amar Singh Ishar Singh said the suspects are believed to have been involved in these activities since 2009. “Our investigations revealed that a syndicate used postmen to intercept the credit cards of victims for a fee of between RM50 and RM100 for each successful interception,” said Amar. He said the syndicate would remove the chip from the original credit card and insert it into a fake one. A fake chip would be fixed into the original card before it was returned to the owner by post, he said. The seven postmen have been sacked. Pos Malaysia Bhd chief executive officer and group managing director Datuk Syed Faisal Albar said the company was giving its full co-operation to the police in their investigations.
Source: The Malaysian Insider
Source: The Malaysian Insider
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