PayNet confirms commissions charged on QR code merchant transactions

KUALA LUMPUR, 30 Sept 2023:

Payments Network Malaysia (PayNet) yesterday confirmed that commissions apply to all QR code merchant transactions from tomorrow, Oct 1.

In a statement, PayNet said e-payments by a customer to any merchant attracts the merchant discount rate (MDR) – which is charged based on a percentage of the payment transaction value.This is similar to that charged on all credit and debit card transactions.

“To concerns that MDRs will be passed on to consumers, PayNet wishes to clarify purchases using credit and debit cards are already subject to MDR.

“Products and services purchased with credit or debit cards are priced the same as cash purchases. Likewise, we do not foresee prices of goods and services to be affected by purchases using DuitNow QR after MDR is imposed.

“At present debit and credit card payments incur MDRs, whereas there is MDR waiver on QR payments. From 1 October 2023, this MDR waiver for DuitNow QR payments will be uplifted.”

Paynet said this MDR is paid by the merchant, who would receive the payment made by their customers after deducting the MDR.It said the collected MDR will be shared between PayNet and the relevant bank or third-party acquirer.

“It is to cover upkeep of our network as well as costs incurred by banks and third-party acquirers for onboarding merchants to enjoy this valuable service.”

As operator of the DuitNow QR system – Malaysia’s interoperable QR standard that allows payments and receiving funds from any participating Bank and eWallet with just one QR code – PayNet said the MDR was waived to incentivize adoption during the QR payment introductory period in 2019.

“This waiver was further extended due the outbreak of Covid19. It is neither a new nor an additional fee. Instead, 1 October 2023 is the end of the MDR waiver that was supposed to have been done over nine months ago.”

PayNet further said a reserve fund will be established with the MDR collected by PayNet to incentivise acquirers not to charge the smaller businesses.

“Whilst PayNet is not in a position to dictate what the market charges merchants, several banks and third-party acquirers intend to either continue to defer imposing MDR or absorb it for smaller businesses. In this respect, merchants should check with their bank or third-party acquirer to confirm this matter.”

PayNet also said a 50 sen fee is chargeable for transfers above RM5,000, which “is for peer-to-peer fund transfers from a personal QR to another personal QR, not payments to merchants”.

It clarified: “This is completely unrelated to the first mentioned QR payments to a merchant and under no circumstances will both fees be imposed for the same transaction.”