Touch ‘n Go eWallet (TNG eWallet) users traveling abroad will soon face a new charge for using QR payments. Starting from April 25th, 2024, a 1% conversion fee will be applied to all overseas QR transactions.
New Fee for Overseas Transactions with TNG eWallet
According to TNG eWallet, this fee won’t be a separate charge but rather a markup on the daily exchange rate of your destination country. This means you’ll see the final exchange rate with the 1% fee already included, eliminating any hidden charges during transactions.
Local Transactions Unaffected
However, the good news is that this fee only applies to foreign QR payments. Transactions using local DuitNow QR codes remain unaffected. This means you can continue using your eWallet seamlessly for everyday payments within Malaysia.
The 1% conversion fee applies specifically to payments made through foreign QR networks like Alipay+ (popular in Mainland China and Japan), Thailand’s PromptPay, Indonesia’s QRIS, and Singapore’s NETS QR. It’s important to note that this doesn’t affect TNG Visa transactions, which have already been subject to a separate 1% fee for international card payments since their launch.
Despite the new fee, TNG eWallet assures users that they’ll continue to offer some of the most competitive overseas transaction rates in the market, claiming they remain lower than what most credit cards typically charge.
Reasoning Behind the Fee
This move by TNG eWallet reflects a common practice in the financial industry. Processing overseas transactions often involves multiple parties like the merchant’s bank, the acquiring bank (who handles the transaction), and the issuing bank (who provides the eWallet service). Each of these parties incurs costs, and the 1% conversion fee helps TNG eWallet cover these expenses.
While the introduction of a fee might be seen as an inconvenience, it’s important to consider the bigger picture. Compared to credit cards that typically charge foreign transaction fees ranging from 3% to 4%, TNG eWallet’s 1% conversion fee might still be a more economical option, especially for frequent travellers.
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Source: Touch ‘n Go
