PETALING JAYA: Consumers should be vigilant about hidden charges when making cashless payments at entertainment outlets, as such practices often go unreported and could undermine confidence in digital transactions, says the Federation of Malaysian Consumers Associations (Fomca).
Its chief executive officer T. Saravanan said many consumers only realised they had been charged additional fees after completing a transaction and were unsure where to lodge complaints.
“Whether the payment is made by cash, QR code, debit card or credit card, the final amount charged must be transparent,” he said.
“Hidden charges, regardless of the amount, are unfair business practices.
“If left unchecked, they could become normalised and affect consumer confidence in cashless payments.”
Saravanan also advised consumers to check the amount displayed on the phone carefully before confirming any cashless payments.
“Keep screencaps of the payment confirmation and retain the receipt as evidence in case of a dispute.
“If an unexplained charge appears, consumers should question it immediately before leaving the premises, as it is much easier to resolve the matter there and then.”
He said consumers could also report suspected unfair practices to the Domestic Trade and Cost of Living Ministry, the National Consumer Complaints Centre or other relevant authorities.
“A formal complaint supported by receipts, screencaps and photographs gives enforcement agencies the evidence needed to investigate.”
Saravanan added that consistent enforcement should complement existing laws requiring businesses to display prices clearly and not mislead consumers.
Industries Unite co-founder Datuk David Gurupatham said there had been reports and complaints about such practices.
“Any additional fee should be clearly disclosed upfront and not disguised under vague descriptions.”
He added, however, that the public should not assume that every administrative fee was an attempt to overcharge consumers.
“Some businesses do incur genuine payment processing costs because cashless payments involve merchant discount rates, payment gateway charges, software subscriptions, terminal rental, cybersecurity costs, reconciliation systems and compliance requirements.”
He stressed, however, that such costs should not simply be passed on to consumers as undisclosed surcharges.
He noted that many operators already retained a portion of service charges to cover costs such as credit card transaction fees, which he said were usually below one per cent, debit card fees of below 0.5% as well as breakages.
He added that QR and online payments were credited directly into businesses’ bank accounts.
“For larger businesses, these costs can often be absorbed. However, for smaller operators, particularly SMEs (small and medium enterprises) and some entertainment outlets, absorbing every additional cost may not be commercially sustainable.
“The solution is not necessarily to pass these costs directly to consumers.
“Businesses should instead improve operational efficiency, negotiate better merchant rates and factor reasonable payment costs into their overall pricing structure rather than imposing unexpected charges at the point of payment.
“If a fee exists, it must be clearly explained before the transaction is completed so that consumers can make an informed choice,” he said.
He also stressed that the objective should not be to discourage cashless payments, which he said could help businesses reduce the risks associated with theft and cash shortages.
He also said existing laws were sufficient, but should be complemented by clearer guidelines specifically addressing digital payment practices.
