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The following guide helps you determine whether a merchant you intend to introduce as an eCosway Partner Merchant is likely to be approved by AmBank.

Like all banks, AmBank assesses a merchant with regards to:

These factors determine whether the bank will make an offer to that merchant, and if so, at what terms (for example, monthly terminal rental, if applicable, and percentage (%) transaction fee.)

The Potential Volume Of Credit Card Transactions

It costs banks to install and maintain an electronic terminal at a merchant. If the volume of transaction through credit cards is too small, the bank cannot sustain the cost. Note: Some businesses may be big, but the majority of their customers pay by cash, not through credit cards.

As a guide, AmBank will install and maintain a terminal at a merchant for free, if the (potential) monthly credit card transaction is consistently RM30,000 or more.

Below that amount, AmBank may still approve if there are good prospects for future business growth. In such cases, the merchants may have to pay a “monthly terminal rental fee”. Merchants can rent a terminal from GHL (an independent terminal supplier) for RM120 per month.

However, business volume is not the only criterion. AmBank may reject a merchant if its transaction ticket size (see below) is small, and/or the business risk is high, even if it is willing to rent the terminal. Back to top

The “Ticket” Size

All banks have to pay Mastercard or VISA a royalty for every transaction made. So if a merchant’s typical transaction is small (say RM 30 or below), the banks lose. Therefore, merchants having small ticket sales may not be approved.

For example, a small provision shop or food outlet may have customers spending an average of only RM10.00 per transaction. Even if the bank charges the merchant 2.5%, it earns only RM 0.25 from the RM 10.00 transaction, but has to pay much more in royalty! Back to top

The Business Risk

Some types of businesses pose an inherently higher risk for the banks. Fraud card syndicates, for example, often target spending at merchants that offer high-value, easily “disposable” products, like cellular phones.

Also, new businesses with low investment and temporary premises (like short-term leases) are likely to pose higher risk than established businesses with good track records.

Therefore, all banks will sign up merchants only after an evaluation of the risks. This does not mean that no merchant on the “high risk list” can ever become an eCosway Partner Merchant. But they will be subjected to closer scrutiny, through a case by case evaluation. Back to top

AmBank Will Do Its Utmost

To ensure the success of our Partner Merchant Program, AmBank will use its utmost discretion to approve as many Partner Merchant applications as possible, as every merchant approved will help both the bank and eCosway’s cardholders. However, approval is never “automatic”, and Business Owners should not imply such a guarantee on behalf of AmBank.

Also, AmBank will offer the best rates it can to an eCosway Partner Merchant, in order to make it easy for merchants who are using other bank’s credit card terminals to switch to AmBank. But again, Business Owners should not promise a merchant that AmBank will definitely match or better their current banker’s terms. Doing so may prejudice the bank’s dealing with the merchant, and lead to disappointment for all parties.

In talking to the prospective merchants, Business Owners should therefore focus on explaining the benefits of our Partner Merchant program in bringing new and loyal customers to the merchant, and help convince the merchant to offer eCosway the highest discount possible. AmBank will then contact the merchant directly about the terms of the credit card terminal.

Note that a Partner Merchant’s agreement with eCosway is contingent on the merchant’s final agreement with AmBank. If the merchant cannot agree with the bank, then its earlier agreement with eCosway will become null and void.

Types of Businesses classified as “High Risk” by Banks

  • Car accessories shops

  • Car workshops

  • Tyre shops

  • Pubs, karaoke lounges and other night entertainment outlets.

  • E-commerce and Internet businesses

  • Computer outlets

  • Handphone outlets

  • Goldsmiths


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