Merchants Cannot Impose Minimum Purchase Amount or Surcharge for Card Payment

Merchants Cannot Impose Minimum Purchase Amount or Surcharge for Card Payment

1024 536 Chan Zi Xin

In Malaysia, it is quite common that we come across merchants setting minimum charges for card payments, or even impose a surcharge. Under black letter law, it is legal for them to do so?

Recently, a journalist from reached out to Bank Negara Malaysia (BNM) to seek clarification and this is what BNM replied:

“Merchants are prohibited from imposing a minimum purchase amount for goods bought using payment cards.”



This above restriction is also stipulated in the scheme rules issued by Mastercard and Visa.

Under Section of the ‘Visa Core Rules and Visa Product and Service Rules’, it states that:

“a Merchant must not establish a minimum or maximum transaction amount as a condition for honouring a Visa Card or Visa Electron Card.”


Under Section 5.11.3 of the ‘Mastercard Rules’, it points out that:

“a Merchant must not require, or indicate that it requires, a minimum or maximum transaction amount to accept a valid and properly presented Mastercard or Maestro Card.”


Meanwhile, the Association of Banks in Malaysia (ABM) had in earlier press release stated that imposing minimum spending on card payment is not allowed, and that it will carry out random checks to ensure merchants do not do so.

Why some merchants impose minimum spending amount or surcharge for card payment?

In the Payment Card Reform Framework issued by Bank Negara Malaysia (BNM), it has been stated that merchants have to pay a merchant discount rate, comprises of the interchange fee, processing fees, and other fees imposed by an operator and acquirer for facilitating a card transaction. In other words, this simply means that merchants face additional costs for accepting a card payment, and fees are imposed every time a card transaction occurs.

Therefore, some merchants who do not want to bear these costs would try to pass off the fees to consumers through imposing a surcharge, or setting a minimum payment amount before accepting card payment. However, both of these practices are forbidden by law.

So, as a consumer, what can you do about it?


Potential Actions

  1. Firstly, tell the merchant owner that he/she is not supposed to do so and request politely that he/she shall change their payment policies to comply with the law.
  2. If the merchant refuses to comply, you may report the merchant directly to the financial institution that processes the card payment on behalf of the merchant. P/s: the merchant’s bank or financial institution’s logo can be spotted at the card terminal or in the receipt.
  3. You may also report to Bank Negara Malaysia by calling 1300-88-5465 or sending an email to
  4. Alternatively, you can raise the matter to ABM by calling 1-300-88-9980, or submit your complaint online via eABMConnect.


Chan Zi Xin

Chan Zi Xin is currently pursuing a Master in Medical Law (LLM) in the University of Liverpool as a Hodgson scholar. Having had her own articles published in Brickfields Law Review and Liverpool’s Law Bulletin, Zi Xin also led the operation of the University of Liverpool’s Law Review as the Deputy Editor In Chief (2016-17). Besides, Zi Xin currently volunteers with Healthwatch Liverpool as a social worker, where she acts as an advocate to help monitor and influence the provision of health and social care services in Liverpool. Zi Xin is also an avid squash player where she played for the university team and coached junior players.

All stories by:Chan Zi Xin