In a recent move to discourage cash-outs through credit card top-ups to its e-wallet, TNG Digital Sdn. Bhd has announced a significant policy change for credit card reloads.
No more free-of-charge RM1,000 reload limit for credit cards
Effective from February 23, a 1% fee will be charged for all credit card reloads into the TNG eWallet.
According to The Star, this decision comes as a step to curtail the practice of converting credit card balances to cash in bank accounts and to offset the substantial costs of credit card top-ups that TNG Digital Sdn. Bhd has been subsidizing since its inception.
Previously, users could transfer up to RM5,000 per month via credit cards without any charge, a limit that has been reduced to RM1,000 in October 2023.
Bank transfers via DuitNow are encouraged
The platform encourages its users to opt for alternative methods like DuitNow transfers or debit card reloads, which remain free of charge.
“Users are encouraged to use bank transfers via DuitNow which has exactly the same process as fund transfer among bank accounts,” it said in a s statement.
Alan Ni, CEO of TNG Digital Sdn. Bhd, emphasized the company’s role as a leading financial institution serving over 20 million e-KYC verified users.
He stated the necessity of balancing convenience, security, and the long-term sustainability of operational costs.
While credit card top-ups will still be available, the introduction of the 1% fee aims to encourage users to switch to cost-free alternatives like DuitNow transfers or debit cards, ensuring a more secure and sustainable ecosystem for digital transactions.
