KUALA LUMPUR, 29 Oct 2012: DEBIT cards will pave the way to responsible spending among the younger generation, say several groups. Consumer Protection and Welfare Malaysia (LPKPM) president Datuk Seri Dr Saharuddin Awang Yahya said debit cards were a better option for youth rather than credit cards.
“If they (youth) were given credit cards, they tend to overspend and then suffer the brunt of having to pay back the following month.
“But with a debit card, there is better control over expenses and it is based on a person’s bank balance.”
Saharuddin was responding to the New Straits Times’ front page yesterday that there was a rising number of Malaysian debit card users.
It was reported that the debit card spending in the country had a 50 per cent increase year-on-year, surpassing its Southeast Asian neighbours.
Saharuddin also said it was convenient for parents to advocate responsible spending to their children who lived far from home.
“Parents could put aside a certain amount of money for the month and teach their children to ration their money till the end of the month.”
Also, with the rising number of snatch theft cases nationwide, Saharuddin said debit cards proved to be a safer alternative than carrying a thick wad of cash.
Echoing this was Federation of Malaysian Consumers Associations (Fomca) deputy president Muhammad Shaani Abdullah who said that debit cards were convenient as it was a “cashless mode of payment”.
In regard to responsible spending, he said it depended on the attitude of consumers.
“If they (consumers) are going to spend money without setting any limit or restrictions, then there is no point in having a debit card,” he said, adding that there was a need for proper nationwide adoption of debit cards in order to promote responsible spending.
“There are many department stores that accept credit cards but not debit cards.”
Although the usage of debit cards was on the rise, there was still much to do about online security, said Malaysian Youth Council president Maliki Rapiee.
“There is a need to promote online security awareness among the youth,” he said.
As a member of the National Consumer Advisory Council, Maliki said a meeting was held last week with relevant industry players. There were several ideas and initiatives in the pipeline for such campaigns.
One such initiative included some 116 district youth councils to focus on conducting awareness campaigns in people-centred areas such as at morning or night markets.
Meanwhile, a NST street poll yesterday yielded positive remarks over the usage of debit cards.
College student Elizabeth David, 23, said that she started using the debit card two years ago and she found it easier during transactions because she does not have to carry a lot of cash.
“It makes me learn how to spend wisely because it depends on how much cash I have in the bank.”
IT consultant Mohd Shahrizal Osman, 34, said that he preferred to use the debit card as he travelled a lot.
“It is secure to purchase things online as there is an Online Transition Protocol, which notifies buyers if there were purchases made.”
Businessman Callen Tham Chi Vui, 45, said he was an avid debit card user as it was convenient and he carried less than RM200 in his wallet.
Read more: Debit card better option for youth – General – New Straits Times http://www.nst.com.my/nation/general/debit-card-better-option-for-youth-1.162229#ixzz2Ae0W31PH
