ALL merchants have to pay credit card commissions in order to make credit card payment facilities available to their customers. Merchants are suffering higher overhead costs and yet they do not revoke the credit card payment facility. So why should the Petrol Dealers Association of Malaysia (PDAM) be an exception? This is all part and parcel of running a business.

Consumers prefer to pay by card for convenience, personal safety and for the perks they enjoy from issuing banks. On the other hand, merchants enjoy higher sales.

Although the government has stepped in to negotiate with banks to halve the 1% commission especially for PDAM, we must also remember the banks are businesses and this commission is one of their sources of revenue.

Ironically the banks by virtue of their credit card perks programme are responsible for bringing in higher sale for PDAM members. In short, everyone is suffering from the spiralling increase in costs, everyone is feeling the pinch and has to take measures to tighten belts. The sudden move to bar all credit card sales was a rash decision and it makes the rakyat feel worst, especially having to accept price rise. PDAM should stop sulking and making it sound as if they are the only ones affected.

Vegatron
Penang

Source: The Sun – June 30, 2008