Bank Of Ireland Increases Cash Handling Charges
Published on Feb 24 2015 7:45 AM
Bank of Ireland has issued letters to retailers notifying them of an increase in cash handling charges to 60 cent per €100, up from 48 cent per €100.
In addition, coin handling charges will increase to €3 per €100, up from €2 per €100. It's the second increase in cash handling charges at the bank in a year.
In the letter, the bank says that its "new fee format underpins our commitment to continue to invest across our banking channels and payment methods, as supported by the National Payments Plan, the government backed initiative to reduce the usage of cash and cheques and increase the usage of electronic banking."
The changes took effect from yesterday (23 February), and were announced amid a raft of changes, which included reductions in automated transactions and the setting of a contactless service charge at 1 cent per transaction.
"We operate in a largely cash business, so most of our lodgments are in cash," Vincent Jennings of the CSNA told Retail Intelligence. "What I don't understand is how the 'cash handling' multiple works."
"If you lodge a hundred euro note, the handling charge is 60 cent, or if you lodge 20 five euro notes, the same handling charge applies. How can it possibly be justified that that is the cost to the bank of providing that service?"
© 2015 - Checkout Magazine by Stephen Wynne-Jones