Play your cards right, say experts

PETALING JAYA: With Touch ‘n Go eWallet charging a 1% fee on all credit card reloads from Feb 23, consumer advocates are urging consumers to be mindful of their ewallet use.

Smart financial decisions, such as opting for the most cost-efficient way to top up their ewallets, comparing different platforms, and sticking to necessary spending could help users optimise their ewallet use without incurring additional costs, they said.

Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah said the move by Touch ‘n Go to impose the 1% charge may affect consumers as many prefer automatic reloads through credit cards.

The charge may also cause people to switch to other ewallet platforms, he said.

“There should be a minimum threshold before the 1% is enforced – for example, RM200 a month.

“Some may have constraints in terms of cash flow and opt for credit card reloads,” he said.

However, Saravanan also advised consumers to spend wisely when using a credit card as charges can be overwhelming if timely payments are not made.

As inflation and the cost of living are high, consumers should focus on savings to better safeguard their financial wellbeing, he added.

He also said that consumers may choose other ewallet service providers that can give them better options.

“Consumers should compare services provided by all ewallet service providers and consider which would give them better value and services.

“The right to choose is still at the consumer’s hand.

“Consumers may also opt to reload their Touch ‘n Go eWallet via bank transfers as the 1% charge is not applicable for this,” he said.

TNG Digital Sdn Bhd had announced on Feb 3 that it would be imposing a 1% charge for all top-ups to the Touch ‘n Go eWallet using credit cards from Feb 23.

Reloads via DuitNow Transfer and debit cards remain free.

The move to charge for credit card reloads is to offset the heavy cost of credit card reloads, which the company has absorbed since its inception, it said.

The company said it is also to curb users from exploiting the credit card reload feature to reload their Touch ‘n Go eWallet account before transferring the money back to their bank accounts.

Consumers Association of Penang (CAP) education officer and activist NV Subbarow said a way to keep ewallet spending under control is to use the Touch ‘n Go balance only for tolls and not for purchases.

He advised consumers to curb unnecessary spending and to think before using their credit cards.

“Smart consumers must be more alert. Think and make a wise decision before using cards. Unnecessary buying can cost more.

“List down items to buy or not buy and worth buying.

“Many consumers use the credit card just to show others that they have a credit card and feel proud to do so.

“But more awareness is needed. The more you use, the more you have to pay. Minimise your spending habits. If necessary, use cash,” he said.

Consumer advocate Muhammad Sha’ani Abdullah advised consumers to use their debit cards to pay tolls in order to save on the top-up fees.

He also said besides the 1% charge for top-ups done via credit cards, merchants such as third-party businesses, including petrol stations and convenience stores, also charge a fee for Touch ‘n Go card reloads.