Banks Charging for Cash Withdrawals with Card from Different Bank

CONSUMER INFO: For those not banking with Caixa but using their cash-withdrawal machines – as of 27th of March Caixa will be charging 2 euros per withdrawal.

Consumer Organisations warn consumers that they are now paying double, as the bank that issued the card, will also charge for using the card in a machine from a different bank and suggests to claim back the double charge.

UPDATE 24th of July 2015: As of September BBVA will follow suit and will charge the same amount to those using their cash-withdrawal machines but without a BBVA account.

To illustrate what kind if extra income we are talking about here – a simple calculation. Caixa has a network of 9.500 cashpoints throughout Spain. In 2013 they were used by 7,5 million people every month. Approximately 1,5 million were non-clients. Easy extra revenues of 3 million/month. Supposedly all the banks have to do to justify these increased charges is file a report with the Banco de España about costs already incurred or service already provided.

We will keep you posted re any further comments from the Spanish Consumer Organisations and the EU authorities as the charges are currently under investigation in Brussels.

Update 4.8.2015  Santander has announced to join in as well, although the Bank of Spain has issued a press release on the 31st of July declaring the double payment of commission as described above as ilegal and has asked the relevant entities to take measures to correct this situation.

Consumer organisation FACUA is not satisfied with this measure and will denounce the Bank of Spain this coming Thursday, demanding to

issue fines to the banks involved, preferably related to the additional income generated since early this year.

Update 27.8.2015 Nine entities have agreed not to charge this double commission and oppose this measure. They are: Unicaja, Ibercaja, Liberbank, Abanca, Kutxabank, BMN and Evo Banco – all entities linked to the Euro 6000 network, plus Bankia and Banco Sabadell.

Update 05.10.2015  Last Friday a new Royal Decree has been approved, effective immediately, that dictates a new system for charges for cash withdrawals from different bank than where you have your account. You can no longer be charged directly, but the ´other bank´ can charge yours and they in their turn, can decide to ask you to compensate them either fully, partially or not at all. Not a difficult guess what most banks will do.

For withdrawals with a debit card your bank cannot charge you a cent more than the ´other bank´ is charging them, but for withdrawals with a credit card there can be a surcharge. In both cases you should receive info about the charges via the screen of the cash machines before you agree to go ahead with the transaction and take the money out.

The biggest ´beef ´the consumer organisation Facua has with this new decree is that they feel it is a smokescreen, to avoid having to issue fines to the banks (as they demanded in their multiple ´denuncias´ against the banks involved), as the practice to charge double was in fact contrary to both consumer protection law and the laws regulating bank practices and the current legislation enabled both the Bank of Spain and the Ministry of Economy to sanction the banks involved.

This new decree in their opinion is just a bypass to enable the banks to charge higher commissions and divide the proceeds as they see fit. The decree fails to regulate the maximum amounts that can be charged, thus leaving consumers unprotected, again.

Banks have until January 1st 2016 to comply with the stipulations of the Decree, but must inform the Bank of Spain before December 3rd 2015 about the commissions they will be charging.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.