Saturday, December 26, 2009

Malaysia RM50 Credit Card fee waivers

It was mentioned before Malaysia's government initiative to charge RM50 tax on credit card to 'reduce' debt is a plain zany act. When confronted by many institutions and experts, Najib (some of his photos here) even goes public exercising his power to enforce his budget 2010.

Just in case you haven't heard, the time to pay this RM50 tax is the same as your annual fee due month. So if your cards are due in December 2010, you can hold it for another year before cancelling it out. But if your cards are due in Jan 2010, you better find out when the statement date is. You HAVE TO cancel your cards before the statement is generated. Once this RM50 tax is imposed, the banks will NOT be able to waive it for you even if you cancel your cards AFTER the statement is printed.

So far I only know UOB and EON banks will waive this RM50 tax for real.

You have to use your EON cards for 36 times to waive this RM50 tax. Normally you will have to use 24 times to waive its annual fee which is about RM150. So another 10 times more should be ok for those who really use the card.

UOB is one of the first banks to waive this tax in public. Varies options may be available but the one I know is just use RM300 and you will get back RM50 cash benefit to knock off this RM50 tax. UOB is also closely tighted to Robinson so if you shop there often, it could be the card to keep.

see ? The effect is already started .... you have to spend much more in order to save this RM 50 ...

All other cards who offer you RM50 rebate by using the points you have accumulated are just playing with your Finance IQ. It is a common practice that you get back a minimum of 0.2% rebate by using credit cards in this part of the world. The return may reach you either in the form of points accumulation or direct cash rebate on the bill. So giving you the option to 'waive' this RM50 tax with your points is the same like taking your money from your left pocket when you said you want to avoid taking out money from your right.

Do you know any other banks who will REALLY waive this RM50 tax ?

You can use this form to cancel your credit cards