Banks’ ATM policy change to hit consumers

June 04, 2011 | 14:00

(0) user say

Banks are weighing up hiking ATM cash withdrawal fees for other banks’ cardholders.

illustration photo

In early May 2011, most Vietnam Bank Card Association (VBCA) member banks agreed to hike ATM cash withdrawal fees from VND3,300 to VND5,500 per each transaction applicable to other bank cardholders from June 1, 2011.

However, the public voiced anger at the move.

Financial and banking experts said banks have the right to hike the fees to reinvest extra money in promoting ATM network development. However, since current ATM services often fall short of customers’ expectations the move would be a step back backwards.

Head of Ho Chi Minh City Banking University’s Business Management Faculty head Dr. Le Tham Duong said burgeoning ATM services brought banks certain benefits. For instance, an ATM account cash surplus are subject to bank non-term deposit rates and banks can use this money for lending.

Duong argued that imposing fees was okay, but must meet customers’ expectations. Meanwhile, though the country’s ATM services have witnessed marked improvements in some recent years, the service quality as well as utilities are still below expectations.

Besides, fees would be high if cardholders have to withdraw a round sum (VND20 million or $965 for person per day maximally) from other banks’ ATMs.

Despite a sharp rise in card users in Vietnam to around 28.5 million in late 2010, most cards are used simply for cash withdrawals and not for payment purposes.

By Van Linh

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional