In the jungle of commissions on payments on POS And the cost of withdrawing cash from an ATM, there are those who wish to order. To have a clear and valid awareness of the costs applicable to the service, to make everything more transparent and competitive. Alessandro Zulu, CEO of Bancomat spa, a company with a revenue of 23 million and whose shareholders 120 Italian banking groups that issue cards to customers, has asked for a cost structure review. The company presented to the Competition and Market Authority a project to cancel the exchange fee and pay the applicable commission on the tax that the customer will pay. Because the system that regulates cash withdrawals is no longer economically sustainable,” Zollo is keen to stress. It is unfortunate that an additional extension has arrived at the file.
The Anti-Monopoly Authority has announced that it has postponed the closure of the investigation until October 31, which began on December 1, 2020 and ended on April 29. The authority explained that the decision was taken in view of the “complexity of the case with respect to the procedure and the factual framework”.
Numbers But let’s go in order. Approximately 150 million Withdrawals made in one year from ATMs of banks other than the card issuer, out of a total of 550 million with a value of approximately 100 billion euros. The rest is done by customers of the same bank that owns the ATM. There are some banks that allow ATM card withdrawals at the ATMs of a bank other than the issuing bank for free. But the trend still exists to charge a commission that often does not take into account the amount withdrawn. These costs can be changed for a justified reason and above all they must be informed in advance of the customer, who can freely decide to withdraw from the contract. Regardless of whether the charge is charged to the customer or not, the card-issuing bank with the current system must pay the bank that owns the ATM an exchange fee of €49 cents per withdrawal, which is a rate regulated by the authority. An interbank cost is not charged to the customer, who pays nothing to the bank he goes to. Here is the first problematic aspect. Zollo explains: “The cost of managing, maintaining and amortizing an ATM is estimated to be up to €1 per withdrawal. Thus, the bank in which the withdrawal is made is serving at a loss because it only receives 49 cents. This way of working is no longer sustainable.”
It should be noted that the bank that charges the commission, between 0 and 3 euros, is not the bank that is withdrawn. But this is the account in which the customer making the withdrawal owns, so the commission goes to his bank. So if you go to your bank, you pay nothing. If you go elsewhere, you pay up to 3 euros to your bank, where you already have it, by paying it, account and card. “It is a system that, in addition to being very opaque, does not compensate for the cost of those providing the service. That is why we have proposed a different model for the antitrust authority.” The idea is to lower the fixed commission so that each bank sets its own rate. In detail, the Bankumat Spa Project “envisions two basic steps. First, eliminating the exchange fee of 49 cents, and secondly allowing the bank that operates the ATM to charge a fee of up to a maximum of 1.5 euros per transaction to a customer of another bank making a withdrawal,” Zulu explained.
Mold The form states that, before proceeding with the withdrawal, the client is shown the exact amount of the applicable commission, with the possibility of canceling the transaction. In addition to ATM It will provide a free application that will display the location of all ATMs with an indication of the commission applied by each of them. The applicable commission shall be unique to each banking group throughout the national territory. “We are convinced that the fee for a withdrawal service managed in this way will allow the ATM to stop closing. Our new model also overcomes this problem because it plans to expand the possibility of withdrawing cash even from point of sale businesses with a lot of cash. ie: gas stations, cigarette dealers, supermarkets. The proposal backed by the company could finally provide an answer to the protests raised by consumers. The application of a maximum commission rate, such as acknowledgment at the time of withdrawal of the applicable cost by the bank, is specifically aimed at greater transparency. In the market, the reversal, as it was already at the European level, will ensure coverage and greater competition even in the smallest municipalities.