Many of us have one or two credit cards issued by a bank without having a savings or current account at the same bank. As such, we resort to a monthly "exercise" of queuing in front of an ATM to make payment. Since the number of credit card users is increasing, the time taken to complete this monthly routine task at an ATM is also taking longer. An alternative method is needed to save time, enter Giro Interbank money transfer.
Luckily, Bank Negara has asked our bankers to provide cheaper interbank services to customers. We can now make credit card payments via our current online banking system, with a fee as low as RM0.10 per transaction.
To do a Giro Interbank ( IBG) money transfer, the cost is RM0.10 but the payment must be made earlier. This is because it normally takes 1-2 working days to reflect in your account. For example, if your credit card due date is on Sunday; you should make your payment by Tuesday. The payment should be credited by Thursday. In case of any errors, you still have an extra day to take any necessary steps to avoid late payment.
For emergency cases, you should use the instant interbank fund transfer (IBFT) option to avoid any late payment penalty and to maintain your credit status. However, instant transfers cost more:RM2 per transaction.
The cost of RM0.10 is reasonable. We also do not run the risk carrying large amounts of cash from one bank to another. Lastly, we save time and cost traveling to a particular bank to use the ATM.
Many of us still worry about the security of online transactions. However, with highly encrypted pages and the requirement of a Transaction Authorisation Code (TAC) makes bank websites some of the most secure on the web. Most fraud cases reported tend to be due to carelessness and trusting third parties with our logins and passwords. For your part, never reveal our TAC to anyone and ensure your computer is free from viruses or any malware and your registered mobile is always with you. It is quite difficult for someone to steal your money via the internet if you take due precautions.
This is a guest post by Xaivier Chia who regularly blogs his value investing and financial/money related experiences and insights at http://xaivierchia.blogspot.com. Readers can contact the author via his personal blog.
*Picture courtesy of Jomphong at Freedigitalphotos.net.