Zimbabwean banks increase ATM service charges
They have announced a 300 per cent rise in the price of charges.Zimbabwean banks have announced a 300 per cent rise in automated teller machines' (ATM's) service charges for withdrawals in a bid to finance the maintenance of ATM infrastructure.
Banks have started increasing service fees for withdrawals made through the national electronic funds switch (ZimSwitch) platform from $1 to $4, while Visa cardholders' withdrawal fees on other bank's ATMs increased by between one to two per cent.
ZimSwitch said while it had capped its fee at $0,30 since the introduction of the multi-currency regime, other components to the charges such as the acquirer fee and charges by the bank which owns the credit card had been reviewed over the years.
"The ZimSwitch board, following requests from some member banks through the Electronic Payment Association of Zimbabwe (Epaz) and in consultation with the Reserve Bank of Zimbabwe has made the following fee approvals which take effect from Monday December 14th", according to a circular dated November 21, 2014.
"The acquirer fee will go up from $2 to $3 to help compensate acquirers for the infrastructure maintenance costs."
Analysts quoted by The Independent say that while the move is expected to boost non-interest income for the sector, it could hurt bank customers and discourage them from using the switching system.
However, Stanbic Bank said the move would have no impact on non-interest income and advised its customers to manage costs by using its ATMs instead of the switching platform.