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<blockquote data-quote="EG8" data-source="post: 885278" data-attributes="member: 1504"><p><strong>No more credit card payments at pumps </strong></p><p><strong>By Arman Ahmad </strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>Petrol station operators will not accept payment by credit card from next </strong></p><p><strong>month. Petroleum Dealers Association of Malaysia president Alang Zari </strong></p><p><strong>Ishak today said the 1.25 per cent charge imposed by banks for credit </strong></p><p><strong>card usage had became "unbearable" due to increased fuel prices. </strong></p><p><strong></strong></p><p><strong>"These charges are pegged to the selling price. Therefore they increase </strong></p><p><strong>in tandem with the price of fuel. However, the eight sen per litre </strong></p><p><strong>commission for petrol and 3.5 sen commission per litre for diesel remain </strong></p><p><strong>the same," he said. </strong></p><p><strong></strong></p><p><strong>These differences, he claimed, were too big for petrol station owners to </strong></p><p><strong>manage. </strong></p><p><strong></strong></p><p><strong>Therefore, they propose to discontinue the use of credit cards altogether </strong></p><p><strong>after the coming Hari Raya celebrations, unless the Government intervenes. </strong></p><p><strong></strong></p><p><strong>When contacted, Domestic Trade and Consumer Affairs Minister Datuk Shafie </strong></p><p><strong>Apdal said: "I am not aware that the association will stop the use of </strong></p><p><strong>credit cards at petrol stations after Hari Raya. </strong></p><p><strong></strong></p><p><strong>"The use of credit cards to purchase fuel at petrol stations should not </strong></p><p><strong>stop." </strong></p><p><strong></strong></p><p><strong>He said he would contact the association to see what the ministry could </strong></p><p><strong>do to help. </strong></p><p><strong></strong></p><p><strong>In explaining the rationale for stopping the acceptance of credit cards, </strong></p><p><strong>Alang, whose association has a membership of 2,700 petrol station </strong></p><p><strong>operators, said the profit margin for diesel sales was worst hit by the </strong></p><p><strong>credit card charges. </strong></p><p><strong></strong></p><p><strong>He explained that for every litre of diesel purchased using a credit </strong></p><p><strong>card, 1.601 sen went to the bank as credit card charges while the petrol </strong></p><p><strong>station operator made a net profit of just 1.899 sen. </strong></p><p><strong></strong></p><p><strong>More than 40 per cent of petrol purchases are done using credit cards. </strong></p><p><strong></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>"We submitted a working paper to the Government, via the Ministry of </strong></p><p><strong>Domestic Trade and Consumer Affairs in May. The working paper outlines </strong></p><p><strong>the problems faced by the dealers." </strong></p><p><strong></strong></p><p><strong>Alang added that although they had been in constant dialogue with the </strong></p><p><strong>ministry since then, the ministry had yet to respond. </strong></p><p><strong></strong></p><p><strong>"We also propose reducing the operating time of petrol stations from 24 </strong></p><p><strong>hours to 16 hours. </strong></p><p><strong></strong></p><p><strong>However, in critical areas near highways, hospitals, wholesale markets </strong></p><p><strong>and other such places, we will continue to operate 24 hours a day," he </strong></p><p><strong>said. </strong></p><p><strong></strong></p><p><strong>Malaysian Trades Union Congress president Syed Shahir Syed Mohamud said </strong></p><p><strong>petrol station owners should not take the easy way out when faced with </strong></p><p><strong>the problem. </strong></p><p><strong></strong></p><p><strong>"They didn’t complain when they were making large profits, but now when </strong></p><p><strong>it’s reduced they are not satisfied." </strong></p><p><strong></strong></p><p><strong>Federation of Malaysian Consumer Associations president N. Marimuthu said </strong></p><p><strong>the move would inconvenience the public as many consumers used credit </strong></p><p><strong>cards to pay at petrol stations. </strong></p><p><strong></strong></p><p><strong>"The banks and petrol stations should negotiate a solution to the </strong></p><p><strong>problem. We can’t call ourselves a technologically advanced state without </strong></p><p><strong>credit card facilities at petrol stations," he said. </strong></p><p><strong></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>-------------------------------------------------------------------------- </strong></p><p><strong>------ </strong></p><p><strong>© Copyright 2004 The New Straits Times Press (M) Berhad. All rights </strong></p><p><strong>reserved.</strong></p><p><strong></strong></p></blockquote><p></p>
[QUOTE="EG8, post: 885278, member: 1504"] [b]No more credit card payments at pumps By Arman Ahmad Petrol station operators will not accept payment by credit card from next month. Petroleum Dealers Association of Malaysia president Alang Zari Ishak today said the 1.25 per cent charge imposed by banks for credit card usage had became "unbearable" due to increased fuel prices. "These charges are pegged to the selling price. Therefore they increase in tandem with the price of fuel. However, the eight sen per litre commission for petrol and 3.5 sen commission per litre for diesel remain the same," he said. These differences, he claimed, were too big for petrol station owners to manage. Therefore, they propose to discontinue the use of credit cards altogether after the coming Hari Raya celebrations, unless the Government intervenes. When contacted, Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said: "I am not aware that the association will stop the use of credit cards at petrol stations after Hari Raya. "The use of credit cards to purchase fuel at petrol stations should not stop." He said he would contact the association to see what the ministry could do to help. In explaining the rationale for stopping the acceptance of credit cards, Alang, whose association has a membership of 2,700 petrol station operators, said the profit margin for diesel sales was worst hit by the credit card charges. He explained that for every litre of diesel purchased using a credit card, 1.601 sen went to the bank as credit card charges while the petrol station operator made a net profit of just 1.899 sen. More than 40 per cent of petrol purchases are done using credit cards. "We submitted a working paper to the Government, via the Ministry of Domestic Trade and Consumer Affairs in May. The working paper outlines the problems faced by the dealers." Alang added that although they had been in constant dialogue with the ministry since then, the ministry had yet to respond. "We also propose reducing the operating time of petrol stations from 24 hours to 16 hours. However, in critical areas near highways, hospitals, wholesale markets and other such places, we will continue to operate 24 hours a day," he said. Malaysian Trades Union Congress president Syed Shahir Syed Mohamud said petrol station owners should not take the easy way out when faced with the problem. "They didn’t complain when they were making large profits, but now when it’s reduced they are not satisfied." Federation of Malaysian Consumer Associations president N. Marimuthu said the move would inconvenience the public as many consumers used credit cards to pay at petrol stations. "The banks and petrol stations should negotiate a solution to the problem. We can’t call ourselves a technologically advanced state without credit card facilities at petrol stations," he said. -------------------------------------------------------------------------- ------ © Copyright 2004 The New Straits Times Press (M) Berhad. All rights reserved. [/b] [/QUOTE]
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