Can Retailers Charge You Extra For Credit Card Purchases? Here's The Answer

So sneaky these retailers.

Have you ever checked your receipt after you've made a purchase using a credit or debit card and noticed that the retailer charged you a little bit extra?

Retailers charging you extra for credit card purchases is nothing new as this practice has been going on for a while now, but the most important question is: are they allowed to do so?

The answer is: absolutely friggin' not.

Bank Negara Malaysia said in a statement cited by The Star Online that retailers are prohibited from charging consumers more for credit card purchases.

The agency said banks are actively monitoring and enforcing the rule, ensuring that retailers do not impose surcharges on unsuspecting consumers.

According to BNM, a number of merchants reportedly charge up to an additional two per cent when purchases are made via credit or debit cards.

So, if it's illegal, why are retailers doing it?

BNM revealed that these retailers choose to impose surcharges to recover the cost of the transaction fee, known as the merchant discount rate (MDR), charged to them when a payment is made via credit cards.

If you encounter merchants who impose surcharges, lodge a complaint with their respective banks or payment card issuers and BNM will get to work.