Before relying on your mobile device to make payments while traveling abroad, it’s crucial to consider the additional fees associated with each transaction.
In Malaysia, the adoption of cashless payment methods, such as e-wallets, has become widespread, offering undeniable convenience in our daily lives. With over 17 million e-wallet users in the country and growing, it’s evident that Malaysians appreciate the ease of going cashless.
However, recent announcements from TNG Digital have shed light on potential cost implications for users making overseas transactions. TNG Digital has revealed plans to introduce a 1% transaction fee for cross-border QR payments, starting April 25, 2024. This means that users utilising TNG eWallet for international payments may see an increase in their holiday expenses. When combined with existing credit card fees, the total transaction cost could range from 2% to 4%, particularly if the e-wallet is linked to a credit card. (you will need to check with your issuing bank on their foreign exchange rates for credit cards)
It’s important to note that while TNG Digital’s move may seem new to some, overseas transaction fees are a common practice among credit and debit card providers as well as other e-wallet services. Credit card companies typically charge anywhere from 1% to 3% on foreign exchange transactions, with additional charges for outstanding balances not cleared within the same month.
Alan Ni, CEO of TNG Digital Sdn. Bhd, explains the rationale behind the decision: “While it’s standard practice for credit cards, debit cards, and e-wallets to charge overseas transaction fees, we’ve previously absorbed these costs to encourage the use of cross-border payments within TNG eWallet.”
Users will be able to view the 1% conversion fee reflected in the daily exchange rate of their travel destination, presented in real-time before completing the transaction. Importantly, this fee structure does not affect the Touch ‘n Go eWallet Visa card.
In light of these developments, travelers are advised to stay informed about the fees associated with their chosen payment methods to avoid any surprises and plan their expenses accordingly.
