The RM1 ATM fee is gone — but not for every machine in Malaysia

From 1 July 2026, Malaysia’s banks abolished the RM1 interbank ATM fee. Millions of Malaysians who use other banks’ machines now pay nothing for each withdrawal.

But the waiver has a gap. Communications Minister Datuk Fahmi Fadzil confirmed on 2 July that the exemption only applies to machines operated by banks.

If the machine you are using belongs to a third-party operator — not a bank — the RM1 fee remains. The largest third-party ATM operator in Malaysia is Euronet. It is a US-listed global fintech firm and became the biggest non-bank ATM deployer in the country in 2024. For most Malaysians, that name means nothing yet. But the machines they operate may already be part of your daily routine — you just might not know it.

What the ATM fee waiver actually covers

The announcement on 15 June 2026 came from three banking associations — ABM, AIBIM and ADFIM — in collaboration with PayNet. It promised free cash withdrawals at any ATM or cash machine run by banks in Malaysia, from 1 July 2026.

That phrase — operated by banks — is the boundary. It covers the 14,000-plus machines owned and run by licensed banks. It says nothing about machines run by independent ATM deployers. By late 2024, those machines already made up 8.4% of Malaysia’s total ATM install base.

CJ.MY contacted Euronet Malaysia for clarification. A customer service representative confirmed that Euronet operates as a White Label ATM provider, not a commercial bank. Its fleet is therefore not included in the government’s waiver.

The RM1 transaction fee still applies to withdrawals made at Euronet machines. CJ.MY contacted Euronet’s Asia Pacific office for an official response before publication. No response was received by the time of publishing. This article will be updated if a reply is received.

Euronet’s own published materials explain this clearly. Independent operators charge an ATM Access Fee — a flat fee for providing the ATM service itself. This fee has nothing to do with the interbank charge your bank applies. The banking waiver removes the interbank charge. It does not remove the access fee.

How Euronet became Malaysia’s largest non-bank ATM operator

In 2024, PayNet decided to sell its 800-unit MEPS ATM network to focus on digital payment initiatives. The buyer was Euronet, a Nasdaq-listed global financial technology company operating in 67 countries with over 53,000 ATMs worldwide.

In May 2024, Euronet finalised the acquisition of all 800 MEPS ATMs from PayNet. That made it the biggest non-bank ATM operator in Malaysia. A rebranding exercise was announced to convert MEPS machines to Euronet branding. The process was expected to take about a year. Machines you used as recently as mid-2025 may still have shown MEPS branding while already under Euronet’s ownership.

Euronet’s machines are found in busy locations — 7-Eleven outlets, KL Sentral, shopping malls, tourist areas and convenience stores. The company says its fees are fair and transparent. It displays all charges on screen before you confirm, and lets you cancel at no cost.

That transparency only works if customers know to look for it. Many Malaysians may assume the nearest machine is covered. They will only find out otherwise when the fee appears on screen.

Euronet is not the only non-bank ATM operator in Malaysia. Safeguard CS, a local security and ATM services firm, also operates white-label ATMs. Seven Bank, the financial arm of Japan’s 7-Eleven Group, began installing machines in Malaysia from January 2025, starting in Rawang, with plans for 100 units across KL, Selangor, Penang and Johor.

None of these operators are covered by the banking waiver.

Cash is not going away — and that is the point

Digital payment numbers are impressive. DuitNow QR hit 3 billion transactions in 2025, doubling from the year before. PayNet processed 8.44 billion digital transactions in total — roughly 260 every second. The push toward cashless payments has produced real results.

Yet ATM withdrawals still accounted for 49.8% of Malaysia’s payment market activity in 2025. Cash did not disappear — it held its ground. Cash remains essential. Wet markets, hawker stalls, rural shops and older Malaysians all depend on physical notes.

The banking industry’s decision to drop the RM1 fee reflects this reality. Cash and digital payments run side by side. Both need proper infrastructure.

That makes the third-party ATM gap more significant, not less. If cash is essential enough to waive fees at bank machines, the same logic should apply elsewhere. The machines filling gaps in rural and underserved areas deserve the same treatment.

What to check before your next withdrawal

The Minister’s confirmation and Euronet Malaysia’s direct clarification close the question — but only for those who know to ask it. Many Malaysians may assume the nearest machine is covered. They will only find out otherwise when the fee appears on screen.

Datuk Fahmi Fadzil’s advice is simple. Check for bank logos before using any ATM. If the machine belongs to a licensed bank, your withdrawal is free of interbank fees from 1 July 2026.

If it carries the Euronet logo — orange and white, often freestanding rather than wall-mounted — a fee still applies.

The machine will display the charge before you confirm. You can cancel at no cost. But the better move is to find a machine with a bank’s name on it before you insert your card.