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Increasing in ATM fees: Arguments of the bank and the users

Wednesday 09, 05 2018
On-net withdrawal fee at Agribank's ATM increased by 500VND/ transaction to 1500VND, transfer fee via E - mobile banking is at least 8,000 VND/ transaction.
Eximbank charges 11,000 VND /month for SMS Banking service instead of the yearly fee as usual
Increasing in ATM fees: Arguments of the bank and the users

On-net withdrawal fee at Agribank's ATM increased by 500VND/ transaction to 1500VND, transfer fee via E - mobile banking is at least 8,000 VND/ transaction.

Eximbank charges 11,000 VND /month for SMS Banking service instead of the yearly fee as usual.

VIB increased SMS banking fees for business accounts which do not regular generate transactions. Specifically, this fees increased 4 times from 50,000VND/month to 200,000VND.

VCB increased SMS Banking fee from 8,800VND to 11,000VND/month (including VAT). Transfer fee within Vietcombank via Internet Banking, Mobile Banking is 2,200 VND/transaction for the amount below 50 million dong and 5,500 VND/ transaction if the amount is VND50 million or more.

Opinion of Banks:

The main reason for raising fees is to offset the costs of investing, maintaining ATMs. Representatives of Vietnam Card Association said that this adjustment is not enough to offset the cost because 97% of transaction via ATM is withdrawing cash, causing the overload and degrading of ATM.
 

According to the regulations, commercial banks are allowed to adjust the withdrawal fee from ATMs at the ceiling price of 3000 VND/ transaction issued by the central bank.

According to Tuoi Tre News, Vietinbank informed that if each ATM keeps VND1 billion, it needs to have up to VND2,000 billion to fulfill 2000 ATMs of this bank, which is non-profit and account balance of customers is not enough to make up for the costs. So the solution is increasing fee.

Users’ opinions:

There are more than 110 million active ATM cards, increasing only 100 dong per transaction can give banks billions dong.

If paying by card, customers may charge additional fee from 1 - 3%. That is why paying by cash is a common choice.

Money transfer fee increased depending on the volume of transactions, customers will tend to change to other banks with lower costs.

Most banks require a minimum balance without interest are also considered as a way of charging. On average, the minimum balance is 50,000 VND / card with total 111 million cards, the amount of money held by banks is approximately VND5,550 billion/day. With the current interest rates, banks have collected hundreds of billion dong.

Experts’ opinions:

Dr. Nguyen Khac Quoc Bao - University of Economics Ho Chi Minh City said that ATM price cost needs to be stated to make it clear before charging VND9000? The bank’s services are so diverse, has the separation of the cost price of ATM been calculated correctly and fair?

Representatives of the State Bank of Vietnam (SBV) said that ATM card owners have had to pay for many types of fees such as texting accounts, making statements, withdrawing money from other local bank ... and fees from commercial banks are not over the ceiling price, The SBV has not yet agreed to increase the ATM transaction fee at this time.

Learn more: 
Cashless payment: Drastic need for state management

Categories:
Business

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