'Double commission' for non-customer cashpoint withdrawals limited
Sunday, October 4, 2015 @ 11:42 PM
WITHDRAWING money from cashpoints not owned by the cardholder's bank is less likely to cost money thanks to a new Bill of Law passed in an attempt to stop 'double commission' charges.
At present, some banks charge their account holders a fee if they take money out from a cashpoint machine belonging to another entity, and this second bank may also charge, meaning withdrawals can sometimes mean two commission charges.
Now, the bank which owns the cashpoint machine will charge the cardholder's bank, not the cardholder, instead.
The cardholder's bank is free to decide whether or not to pass on this charge in whole or in part to their customer, but details on the ATM screen will state the maximum commission that can be taken.
This means banks will no longer be allowed to charge non-customers directly for using their cashpoints.
The customer's own bank may still charge a commission, although many are now choosing not to do this in order to be more competitive than their rivals.
A double commission charge may still apply, but only for withdrawals made by credit, rather than debit cards, and only where the account holder's bank chooses to pass onto its customer all or part of the fee it has to pay as an entity to the bank which owns the machine, in addition to charging a commission to the customer for using a different cashpoint.
Read more at thinkSPAIN.com