Dáil Éireann Debate, Wednesday - 13 May 2020
86. Deputy Pearse Doherty asked the Minister for Finance if he will consider abolishing all card transaction charges on contactless and chip-and-pin payments recently introduced by a bank (details supplied) in order to encourage non-cash payments as a measure to reduce hand contact in the coming weeks and months; and if he will make a statement on the matter. [5015/20]
Amharc ar fhreagraAll credit institutions in Ireland are independent commercial entities and the imposition of bank fees and charges is a commercial decision for the bank involved. You will be aware that, as Minister for Finance, I have no statutory role in relation to the charges applied by credit institutions. Under Section 149 of the Consumer Credit Act 1995, as amended, the responsibility for the regulation of bank fees lies with the Central Bank of Ireland.
The Deputy will be aware that following my meeting with the banks on 18 March the limit for contactless payments has now increased from €30 to €50 in the majority of stores nationwide.
In a press release on 23 March, the bank referred to in your question announced that it was suspending previously announced changes to fees and charges. As a result, there will be no charges on euro contactless payments and no change to charges for Chip and PIN transactions.
The bank in question has also developed a solution to facilitate the deferral of the quarterly maintenance and transaction fees which were charged to SME business current accounts on 30 March. This allows SME’s to spread the quarter fees over three equal instalments payable in September, October and November this year. It should be noted that quarterly fees are also due to be charged on these accounts in June and September.
I am advised by the Central Bank that it is engaged with firms across the financial system to ensure they are responding effectively to the evolving situation. While entities regulated by the Central Bank must continue to comply with the various rules within the consumer protection framework, card transaction charges are a commercial decision for each regulated entity.
