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Personal checking account customers at AIB will continue to be able to make contactless payments for free, after the bank extends its decision not to introduce the expected charge of one penny per transaction.
AIB had previously announced plans to introduce the charge earlier this year.
But he rowed again amid public concern that he would reduce the use of contactless payment at a time when people were urged not to use cash to prevent the spread of Covid-19.
“Our research shows that 77% of customers use contactless on a weekly basis, this reflects transformed customer behavior and broadens the customer base accessing digital channels,” said Jim O’Keeffe, general manager of retail banking at AIB .
“With this in mind, we are pleased to announce the extension of free contactless payments to all of our customers,” he added.
However, starting in November, AIB customers with a minimum daily balance of € 2,5000 in their account during a fee quarter and who had previously avoided transaction and maintenance fees will face fees.
The decision will affect about 10% of the lender’s checking account clients and the charges will take effect from the end of March next year.
“The average quarterly rates paid by personal clients, who pay fees, are 18 euros, which is equivalent to less than 20 cent a day or about 6 euros a month,” the bank said in a statement.
Customers with accounts designed for ages 66 and over, student accounts, graduate accounts, those paying an AIB mortgage from an AIB personal and checking account, and other basic AIB accounts will continue to receive free banking services.
The number of clients that enter this group is around 780,000, according to the bank.
“We have provided our clients with helpful advice on how to keep their rates as low as possible when using our checking account and online services,” O’Keeffe said.
The Bank of Ireland recently announced changes to its checking account charges, which will result in the introduction of a new € 6 flat fee subscription model and the end of the bank’s ‘no transaction fees’ offering.
This allowed personal checking account holders with a minimum balance of € 3,000 for a full fee quarter to avoid being charged account transaction fees.
It is estimated that around four in ten Bank of Ireland clients will face higher fees as a result.
Daragh Cassidy of Bonkers.ie said he welcomed the news that AIB indefinitely postponed its previously announced plans to start charging for contactless payments.
But he said removing the 2,500 euro exemption will cause some customers to pay significantly more each month for the same service.
“Someone who makes five ATM withdrawals, five chip and pin transactions, and has 15 standing orders, direct debits and / or salary deposits submitted to their account each month, will now pay € 22 every three months in quarterly fees when including the € 4.50 quarterly fee, “he said.
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