There’s hidden cost in cash transactions

I REFER to the letter “Surcharge defeats intent of cashless society” (The Star, Nov 13). I wholeheartedly agree with the writer on this matter and feel that all banks should be more proactive in stopping their merchants from imposing credit/debit card surcharges when customers use their credit or debit cards.

Based on The Payment Card Reform Framework issued by Bank Negara, which can be accessed on its website, all banks are required to reduce the cost for merchants to accept payments via credit and debit cards through the implementation of declining merchant discount rates (MDR). The payment card interchange fees are reflected in the MDRs that must be paid by merchants.