Migration from Paper to Electronic Payments
Migrating from paper-based payments to electronic payments would improve the overall efficiency of the payment system, and provide meaningful cost savings and efficiency to the entire economy. By driving the displacement of cash and cheques through more intensive use of electronic payments, resources involved in manual processing can be redeployed and cost related to cash and cheque handling can be considerably reduced. Electronic payment, which is a more expedient and efficient means of payment, provide the opportunity to improve productivity levels and lower the cost of doing business. Studies have shown that shifting from paper based to a more electronic based payment system can generate an annual savings up to 1% of GDP. Moreover, electronic payments can also enhance financial inclusion by extending financial services to the unbanked communities. In so doing, such communities would be brought into the formal financial system and into the economic mainstream. This would enable them to enjoy lower cost of financial services and better means of savings. The shift to electronic payments is an area in which the quantum leap forward can be made and is essential to the quest to achieve higher economic growth and improve the competitiveness of our economy.
Here are top ten e-Payment FAQ that you should know (prepared by Progressive Insurance Bhd).
1. Why should I choose to receive funds via e-payment?
Faster – funds are available on the same day or latest by the following day of payment date
Convenient – removes the need to travel and deposit the cheque at the bank as payments are credited directly into your bank account
Safer – misplaced, lost, fraud or expired cheques will no longer be an issue
2. Will there be any registration fee imposed if I want to use e-payment?
No, you can enjoy the service fee of any charges.
3. What do I have to do to receive funds via e-payment?
You must indicate in the claim form or inform your insurance company when you first take out a policy with them. You will be required to provide your bank account information to the insurance company in writing or fill it up in your claim form. The claim form is the document to be submitted with other necessary supporting documents when you make a claim.
If you have informed your insurance company of your intention to use e-payment when you first purchased a policy with them, you must remember to update them if there are any changes to your bank account.
4. What are the required supporting documents if I choose to receive e-payment?
The following original documents are required for verification:
NRIC, passport, or other acceptable identification documents; and
A (a) bank statement; OR (b) bank account passbook; OR (c) bank slip; (d) details of your account printed from your bank’s website that has been certified by your bank; OR (e) letter from your bank confirming your bank account details.
5. Is there any restriction on the type of bank account that can be assigned for e-payment?
You can assign any of your existing active saving or current account held under your name or in the case of a joint account that has your name as one of the account holders. The saving or current account must be maintained with one of the financial institutions offering MEPS Inter-Bank GIRO (IBG) service.
Please refer to the following website for a current list of IBG members
6. Can I change my bank account information?
Yes, you are allowed to change your bank account details by submitting the relevant prescribed form together with the required supporting documents substantiating your request to your insurance company. No cost will be charged for this purpose.
7. When will my bank account be credited?
Payment will be made electronically into your bank account by your insurance company as soon as your claim has been approved. Generally, funds will be made available in your bank account within the same day of payment. However, depending on the processes adopted by your bank, you may receive the payment on the same day or a day after.
8. Will I be noticed once the insurance company has made the payment?
Yes, a notification letter will be sent to you once your claim has been approved and the payment has been made. You are also encouraged to provide your email address or mobile phone number for receiving electronic notification at the discretion of your insurance company.
9. How will my bank account information be used and will it remain confidential?
Your bank account details and other related information will be used solely for the purpose of enabling payments to be credited directly into your bank account; and is protected under the Banking and Financial Institutions Act (BAFIA) 1989 that strictly prohibits the disclosure of such information to any person unless customer or his personal representative has given written permission. It should be noted that by signing the relevant form to provide your bank account information, you will be authorizing the disclosure of your bank account information to parties necessary to affect a payment to you e.g. insurance company, financial institutions.
10. What will happen to funds that cannot be credited into my bank account?
If funds cannot be credited into your bank account due to, for example, incorrect bank account number, closed or inactive bank account, you will be contacted by your insurance company to validate your bank account details. However, this may lead to unnecessary delay to the payment process. To avoid this issue, please ensure that your bank account is correct and active upon providing such information to your insurance company. Otherwise, arrangements will be made by your insurance company to remit the payment to you via cheque.
Source: Bank Negara Malaysia (BNM)