View Full Version : Chip-based ATM card: Southern Bank waives RM8 fee **

28-02-2003, 05:25 PM
THE STAR TechCentral
Friday, February 28, 2003

<font size="+1">Bankcard fee waiver for Southern Bank customers</font>

KUALA LUMPUR: Southern Bank Berhad (www.sbb.com.my) said it is offering its Bankcard to all existing Southern Bank and Direct Access customers for the first year, free-of-charge.

Customers can continue to enjoy the fee waiver in subsequent years, subject to meeting certain terms and conditions, it said in a statement.

The Bankcard is an ATM card embedded with a chip, offering enhanced security features and multiple payment applications. It is set to replace all conventional magnetic-stripe ATM cards, Southern Bank said.

It is estimated there are 11 million magnetic-stripe ATM cards in Malaysia.

It was reported late last year that the replacement of all conventional magnetic-stripe cards to the Bankcard is mandatory and all ATM cardholders are required to pay an annual fee of RM8. This drew a strong reaction from the public.


How about other banks? Do they still insist to charge?

28-02-2003, 05:43 PM
other banks crying foul cos they had gentleman agreement. actual cost of card to bank is 11.50 so they have to absord 3.50 loss for each card. cards are supposed to be imported from france by meps and sold to member banks. so who's making the big bucks???

01-03-2003, 01:13 AM
I don't think it's proper for the banks to charge at all in the first place. Do you think you want to pay for something the banks themselves want to do. It is rather their own initiatives (not the customers') to undergo such card-change and their responsibility to ensure security in their own system. If each card costs RM11.50, why do they ask us to chip in RM8 ANNUALLY. Just calculate the amount you have to pay for as long as you live. I don't know whether it's another banks' r...... In view of these, I urge Southern Bank to waive the bankcard fee totally and fully and not just first year alone to attract more customers.

25-03-2003, 01:42 PM
Well, like it or not, you'll all have to switch, unless of course, you all rely on credit/charge cards and internet banking alone...

i've just changed my rhbbank card to the new bankkard, and didn't pay anything (yet, i suppose),... maybe they'll charge it out of my account..

anyway, it still has the magnetic strip to store the pin information, but the added security i would suppose comes from the embedded smart microchip, which would have the latest digital encryption technology that makes it not impossible, but improbable and time-consuming to clone. we'll just have to wait and see if this added security does what it claims to do..

25-03-2003, 04:45 PM
You can read a bit about the smart bankcard from
No, I'm not an agent for RHB - only that when I searched google, it came up with this link at the top of the page.

Anyway, from what I could understand, the banks intend to do away with the magnetic strip which is easily abused. In order to be backward compatible to existing old systems and the fact that a lot of customers are still on the old ATM card, they are maintaining the magnetic strip. There will come a day when the old cards won't be useable when they switch totally from magnetic strip to the smart-chip.

The main feature of the smart-chip would be the ability to store your latest personal info on the card (not possible with the magnetic strip). For example, the user can maintain some electronic money on the card (like a prepaid phone card) which allows for instant payment for services which would otherwise require a dial-up link to your bank account as in the current POS system. Doing away with the direct link to verify your bank-balance at the POS will speed up payment ans well as maintain better security on your bank account.

But beware - the Govt will know exactly what you have done when you use the card because it will provide an electronic record of all your activities. Big Brother is here finally !

26-03-2003, 06:10 PM
And if you do nothing wrong or illegal, you have no reason to fear this... you should be thankful for it!!

26-03-2003, 09:41 PM
No offence to xwierd, but I don't particularly subscribe to this. I believe that we have a right to privacy. Regardless wrong or right, criminal or otherwise, the individual's (and yours and mine too) are purely our prerogative. Moralities cloud the issue. If it is my right, then I reserve the right to exercise or waive it, not by default by another's action. (I am sorry cos it does sound kinda pompous and naive)

However, I am not particularly bothered by it, just wanted to state my piece. Peace y'all.

26-03-2003, 10:31 PM
Bank cards are one thing. The Govt. may not have direct access to your transaction records, hence the Govt. won't really be able to track your expenditure patterns.

The most important document, our IC, is converting to smart-chip and no citizen will be exempted. Now, that is one document that gives the Govt. full access to your card transactions and hence your movements.

Granted, no one would really be bothered to check the movements of another citizen. If you had access to the records of 20 million people, would you bother to trace the movements of anyone? What the system provides for is the facility to trace the movements of anyone if the authorities think they have a need to do so. This brings up xwierd's point - if you are clean, there's no need to worry.

27-03-2003, 10:27 AM
When using bankkard in the ATM, a reaassuring screen will pop up saying "please wait. your card details is being verified"... bs or not i also dunno... but definitely it's reassuring :)

p.s. my 100th post... does this mean i'm budiman already?