debit card tax replaced by 12 cents per transaction

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Unless it's been set up to remove the cap ultimately, I'd say this'll cost more to administer than will be raised with the fee. Will also put an end to free current accounts.
 
Certainly encourages a cashless society.

I assume that all banks will apply these new charges to all customers regardless of the account type? For example, the legacy PTSB Switch product advertised "no ATM fees for life" but I guess this is a 'tax' rather than a bank fee?

This will make it harder for banks to advertise "free banking". This feels like a stealth removal of free banking.

One way around the tax is to get an ATM card issued abroad such as the Revolut offering.
 
A free current account is still a free current account. We need more details on how this operates and Im sure a loophole as such will exist. People will max out when getting cash from atm. Could be worse queues in shops.
 
Does this tax really make a difference to anyone?

If the maximum you can be charged is €5 the same as the stamp duty - then I'll carry on with my usual banking routine of withdrawing cash from the ATM/weekly
 
It's all confusion from rte news - under a heading taxes & charges they mention the new 30 euro limit on contact less card payments. It's neither a tax or charge.
 
CiaranT said:
The plastic bag tax was just a few cent and it decreased plastic bag usage by over 90%. Small taxes can influence behaviour.
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True, but a lot of restaurants, bars etc still don't accept payment via card.

So cash withdrawals will still be necessary for the time being anyway.
 
Audi_Driver said:
True, but a lot of restaurants, bars etc still don't accept payment via card.

So cash withdrawals will still be necessary for the time being anyway.
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It's not a bullet proof solution but this in tandem with lower interchange fees, higher contactless amounts and the growth of tap and pay mobile phone payments will lower cash usage further. All these little things help us move towards a more cashless society.
 
Immediate tip on saving €2.50 - if you have a basic ATM card then use this for withdrawing cash from ATM -max charge €2.50 rather than a full debit card - max charge €5.

This new charge also makes it more cost effective to keep more than one FREE (subject to t&c's) current account -e.g. PTSB & EBS.
 
Zurich life in blackrock only accept bank cheque or draft, some incredibly backward places out there.

I literally use 1 cheque a year most years.

Cynical me thinks they are making it awkward so I will stop.
 
So if this charge only applies to cash withdrawals from ATM's that would mean that there would be no annual charge at all if you stuck to using your debit card for Point of Sale transactions and asked for cash-back whenever you needed cash.
 
Excellent question - you wonder who comes up with this stuff and the cap -ah yes sure the water charges have a cap.
 
so does this charge only appkx to atm usage.can we avoid this fee by getting cash back..is there bank charges for doing so with aib and boi..
 
It appears that this charge will only apply to cash withdrawals from ATM's, not to Point Of Sale transactions or cash-back. The actual text from the budget speech is below. As the stamp duty is applied in arrears I presume we will all still be charged the stamp duty applicable for 2015 usage on 31st December 2015.

"To further encourage and incentivise greater usage of card payment by consumers I will recast the €5 Stamp Duty on Debit/ATM cards. From the 1st of January 2016, this stamp duty will be removed and replaced with a 12c charge per ATM transaction. There will be no charge for debit card transactions. No consumer will lose out as a result of this change as the stamp duty will be capped at the existing levels of €2.50 or €5 depending on card type."
 
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