Bank customers to pay N65 for ATM withdrawals. Read more...

Banks customers will from September 1, 2014
pay a token for cash withdrawals made on other
banks’ Automated Teller Machines, the Central
Bank of Nigeria said in a directive released on
Wednesday.
The re-introduction of the ATM charges came
almost two years after the CBN and the Deposit
Money Banks cancelled the N100 ATM charge in
December 2012.
The new directive for the reintroduction of the
charge was posted on the CBN website, but
instead of N100 per withdrawal, customers using
other banks’ ATMs will now pay N65.
According to the order, which was contained in
the circular signed by the Director, Banking and
Payment Systems Department, CBN, Mr. Dipo
Fatokun, the central bank and the DMBs agreed
to re-introduce the ATM charges because the
cost of transaction was becoming too
burdensome for the banks to continue to bear.
Fatokun also said the charge would become
effective on the fourth ATM withdrawal in a
month, thus making the first three withdrawals
on other banks’ ATMs within the month free.
The circular dated August 13, 2014, read, “The
CBN hereby issues the following directives: The
re-introduction of ‘Remote-on-us’ ATM cash
withdrawal transaction fee, which will now be
N65 per transaction, to cover the remuneration
of switches, ATM monitoring and fit-notes
processing by acquiring banks; the new charge
shall apply as from the fourth ‘Remote-on-us’
withdrawal (in a month) by a cardholder, thereby
making the first three ‘Remote on us’
transaction free for the cardholder, but to the
paid by the issuing bank.
“September 1, 2014 shall be the effective date
for the implementation of the new charge; banks
are expected to conduct adequate sensitisation
to the customers on the introduction of the new
fee; all ATM cash withdrawals on the ATM of
issuing banks shall be at no cost to the
cardholder.”
The CBN, in collaboration with the Bankers’
Committee, had in December 2012 transferred
the payment of the N100 fee on ‘Remote-on-us’
ATM cash withdrawal transactions to the issuing
banks.
The fee was shared between the acquiring bank,
issuing bank and switch companies at the
commencement of the arrangement.
However, Fatokun, in the latest circular, noted
that issuing banks had during the
commencement of the arrangement in 2012
decided to waive the issuer fee of N35, which
should ordinarily have been an income to them.
He further said, “Consequently, banks only bore
the cost of N65 each time their customers use
another banks’ ATMs.
“However, as a result of the unintended
consequences of the decision, which has resulted
in substantial cost burden incurred by banks in
defraying the cost of the service, the payment
structure for card carrying bank customers is
hereby reviewed in line with present realities.”