Key to Understand the Bank ATM Charges | Bank ATM Commission

Bank ATM Charges | Commission

The latest changes made by banks in terms of the introduction and increases in bank ATM charges or bank ATM commission for withdrawing money from ATMs has alarmed customers. Although some bank had already implemented this practice, the news that the big bank was going to extend these costs has, on the one hand, angered a good part of the consumers, and on the other, a wake-up call of the supervisors.

Problems with Bank ATM Charges | Commission

The main problem is that some banks, mainly ING and Evo Bank , do not have their own ATMs (ING) but also use those of other entities (ATMs of the free 4B network and Euro6000 withdrawing at least 60 €), thus having an advantage With respect to the rest of banks, that count and support their own net of ATMs.

For example banksLa Caixa has already decided 3 years ago to charge a commission of € 2 to all clients who were not customers of this entity, and now, the rest of the banking network has decided to make a ditto, since this online banking robs customers and Does not charge commissions, encouraging unfair competition and thus initiating a new war in the sector, this time from the side of the bank charges or commissions.

On the one hand, the banks have agreed to charge commissions to those who are not clients of their own entity, closing the way to the bank that does not have its own ATMs; On the other hand, consumer organizations and government have tried to restrict this fact ,

To understand this “cashier war” we must understand two things mainly:

• The generalized increase of commissions. The banking system has alleviated its difficult situation during the crisis by increasing commissions, to own and others in rates of increase that sometimes have reached 100%. This funding channel has served banks like ING, EVO and other online banking to benefit from the competition.
• The operation of the ATM system. When we go to the cashier, the bank owner of the cashier charges a commission to the bank owner of the card, and now also intend to charge the customer. At the moment this system that it was tried to implant is in the limbo, reason why before the alarm produced and the general discomfort with the bank has incited the Government to promulgate a Decree that prevents to charge two commissions to the consumer since it considers illegal to have to answer twice Before the same act of withdrawal of money.

In addition, during this “ATM crisis” several other issues have been highlighted:

• On one side, the incessant war between banks. While the vast majority of entities initially agreed to establish a common fee for withdrawing money, then some banks balked, like Banco Santander, Banco Popular and Basque savings banks, with rural banks and savings banks Regional organizations. This final fact is motivated by politics not load more potential customers and fight in the market by offering better products, since an increase in fees could further encourage banks to “free tax” and increase competition in banking .
• Another situation highlighted is what would be the role and future of banks online and without commissions, since precisely do not charge commissions for not owning a network and ATM structure quite expensive.
• The European Union has already warned on numerous occasions of the high and numerous commissions in Spain, in other European countries like the United Kingdom most ATMs do not charge any commission.
• These commissions cause a restriction on the withdrawal of money, since only Santander, BBVA and La Caixa account for 42% of the cashiers in Spain. For this same reason the Bank of Spain has considered it illegal to charge twice for the same service, while consumer organizations such as OCU or FACUA have invited clients to complain and denounce which banks are doing this type of praxis.