Charges starting at €2.50 for every cash withdrawal could be introduced next month for using automated teller machines that do not belong to the bank at which the account is held, Times of Malta has been told.
This follows the implementation of the European Union’s Payments Service Directive 2, which, among other things, aims to make payments safer and increase consumer protection.
However, the new rule will also mean that, come February 1, without paying a fee, Bank of Valletta Cashlink users will no longer be able to use their cards at HSBC ATMs, and HSBC Quikcash cards cannot be used to get money from BOV machines.
Holders of international debit and credit cards unwilling to incur extra charges will be restricted to using only ATMs belonging to the bank at which they have their accounts rather than the combined network of about 180 machines.
When the Times of Malta enquired about the tariffs, both HSBC and BOV repeatedly declined to specify the exact amounts, saying such information was publicly available from their website.
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Questions sent to the Central Bank of Malta about the matter were not answered at the time of writing.
The listed tariffs on the Bank of Valletta website indicate that cash withdrawals using a BOV credit card via another bank’s ATM network carry a charge of “€3 plus 0.33 per cent” – the latter rate presumably applying to the amount being withdrawn.
As for HSBC, the charge listed on its website is “€2.50 per transaction”. However, a bank spokesman pointed out that Premier and Advance customers could continue to make withdrawals with the Visa Electron debit card free of charge on non-HSBC ATMs both in Malta and abroad.
He said banks were obliged to introduce new security features on their cards, and therefore the Quikcash would be replaced by the Visa Electron. The transition is being staggered. The Quikcash has already been abolished for debit card holders, and the remaining customers will be able to continue using it until they receive the Visa Electron in the coming months.
It was also noted that until all Quikcash cards were replaced, they could still be used at electronic point-of-sale machines in shops around Malta and Gozo.
A BOV spokeswoman told the Times of Malta the bank would retain the Cashlink card but augment its security features to include ‘chip and pin’ technology, in line with the directive.
In the interim, card holders may continue to use the cards at BOV ATMs and retail outlets, and the bank will communicate with its customers directly when their card is due to be upgraded.
Noting that BOV had the largest ATM network on the island, the spokeswoman pointed out that use of debit and credit cards at the ATMs of other banks would be possible, albeit at a charge.