Domestic ATM withdrawal fees increase again

In addition to domestic withdrawal fees, Agribank also increased interbank transfer fees atATM and interbank transfer fees at E-Mobile Banking application increased to 0.05% of transaction amount, minimum 8,000 VND/transaction.

Increase to cover costs?

The news that Agribank will increase a series of fees has made many customers angry. Ms. Thi (District 12, Ho Chi Minh City) - a garment worker whose salary is paid by the company through an Agribank account - said that when she is paid, her family withdraws a portion to cover rent, children's school fees, and food.

She will save the rest in her account and withdraw it when needed. However, since the withdrawal fee has increased since May 12, she will consider withdrawing less often.

Mr. Thanh, an Agribank cardholder, said that although the increase is only 500 VND/transaction, Agribank is one of the banks with the largest number of issued cards.

Many cardholders are working in the administrative sector, or workers, retirees... so the scope of influence will be large.

"The bank adjusted three types of fees at once. Therefore, not only withdrawals, but also those with interbank transfers were affected, especially business people who need to transfer money frequently," said Mr. Thanh.

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"The State Bank set the ceiling at VND3,300/transaction, but recently banks, including Agribank, have maintained the after-tax fee at VND1,100/transaction. Despite the increase, Agribank's fee is still below the prescribed ceiling. Moreover, the increase of a few hundred dong is "insignificant", only covering a very small part of the cost" - Ms. Phuong said.

According to Ms. Phuong, the bank has invested in machine systems, cash reserves, funds, operations, money transportation... at huge costs.

If calculated in full, the current fee level does not cover costs. This fee increase not only helps banks maintain system investment and partially offset costs, but also contributes to encouraging customers to use non-cash payment methods.

Because the Agribank system is located in many remote areas, the cost is even greater if cash has to be transferred across networks.

"Banks have invested a lot in technology to offer different payment channels and utilities, so they must encourage customers to use non-cash payment channels and increasing fees is an indirect measure to orient customers.

"Over the past time, banks have promoted this but there has not been much change. People still have the habit of preferring cash," Ms. Phuong explained.

Can not increase fees?

In fact, many banks have increased many types of fees in the past. From March 2018 to now, Vietcombank has adjusted some types of fees twice, such as raising the SMS Banking fee from 8,800 VND to 11,000 VND/month, the fee for domestic transfers with an amount over 50 million VND will be 5,500 VND/transaction, instead of applying the general fee of 3,300 VND/transfer within the network (regardless of the amount over or under 50 million VND)...

In addition, this bank also applied a payment account management fee for the first time at VND 2,200/month...

Similarly, Eximbank also charges a fee of 0.05% of the amount for quick transfers via accounts or cards in other systems and locations.

Dong A Bank applies a fee of 22,000 VND/transaction for Internet Banking transfers between different systems and provinces. VIB also started charging fees for many services that were previously free.

Regarding domestic withdrawal fees, except for Agribank, which is expected to increase from May 12, other major banks have not yet announced but will likely also increase this fee in the near future.

Many experts also affirm that banks will certainly have to increase domestic withdrawal fees, because the current fee is much lower than the ceiling allowed by the State Bank.

However, increasing fees must go hand in hand with improving service quality and ensuring the rights of low-income earners.

Mr. Dao Minh Tuan, Chairman of the Vietnam Card Association, said that the ceiling fee for domestic withdrawal is 3,300 VND/transaction, but recently banks have not dared to increase it because they are afraid of public opinion, while it should have been increased and there should have been a roadmap, and it is necessary to calculate what level of increase is appropriate and proportional between banks.

"In addition, increasing fees must go hand in hand with increasing service quality because there are currently many services that can be paid for at ATMs such as paying for public services, fees, etc., but the coordination to do this is not uniform. Therefore, customers feel disadvantaged every time the bank increases fees, leading to a reaction," said Mr. Tuan.

The director of a major bank's card center said that banks need to take measures so that fee increases do not have much impact on low-income earners (who receive salaries through their accounts) and those who rarely use non-cash payment services such as workers, laborers, etc.

For example, the fee for withdrawing money within the network should only be applied to individual customers, but in cases where the company signs a salary payment contract with the bank, it should waive the fee for withdrawing money within the network and allow free withdrawal of money outside the network for 2-3 transactions per month to share with customers.

Similarly, Eximbank also charges a fee of 0.05% of the amount for quick transfers via accounts or cards in other systems and locations.

Dong A Bank applies a fee of 22,000 VND/transaction for Internet Banking transfers between different systems and provinces. VIB also started charging fees for many services that were previously free.

Regarding domestic withdrawal fees, except for Agribank, which is expected to increase from May 12, other major banks have not yet announced but will likely also increase this fee in the near future.

Many experts also affirm that banks will certainly have to increase domestic withdrawal fees, because the current fee is much lower than the ceiling allowed by the State Bank.

However, increasing fees must go hand in hand with improving service quality and ensuring the rights of low-income earners.

Mr. Dao Minh Tuan, Chairman of the Vietnam Card Association, said that the ceiling fee for domestic withdrawal is 3,300 VND/transaction, but recently banks have not dared to increase it because they are afraid of public opinion, while it should have been increased and there should have been a roadmap, and it is necessary to calculate what level of increase is appropriate and proportional between banks.

"In addition, increasing fees must go hand in hand with increasing service quality because there are currently many services that can be paid for at ATMs such as paying for public services, fees, etc., but the coordination to do this is not uniform. Therefore, customers feel disadvantaged every time the bank increases fees, leading to a reaction," said Mr. Tuan.

The director of a major bank's card center said that banks need to take measures so that fee increases do not have much impact on low-income earners (who receive salaries through their accounts) and those who rarely use non-cash payment services such as workers, laborers, etc.

For example, the fee for withdrawing money within the network should only be applied to individual customers, but in cases where the company signs a salary payment contract with the bank, it should waive the fee for withdrawing money within the network and allow free withdrawal of money outside the network for 2-3 transactions per month to share with customers.

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