The Interchange is a fee that the bank pays the publisher of the owner of an ATM card for each payment realized by the cardholder. The surcharge is an additional fee which the owner of the ATM could collect directly from the user of the card.
Currently, the interchange is 1.2-1.3 zł, which is enough for the small amount that many banks took it on himself and offered customers the possibility of free cash withdrawals from all ATMs – including those belonging to the competition. If the fee will go up, for example. To 3 zł, the institutions may have to pass on it – at least in part – on customers.
The second scenario, which provides for the introduction of surcharge, would mean that for every transaction at an ATM the customer would pay a commission directly into the pockets of the owner of the machine. Top zarabiałyby on this course, those institutions that have the most extensive network of ATMs.
Subject to improve the profitability of this part of the business came last year, when the reduced interchange of non-cash transactions, or commission which shopkeepers disperse to the banks from the acceptance of payment cards. Until recently, this limit was 1.6 per cent., And now dropped to 0.2-0.3 percent. Banks are looking for so gains elsewhere, including also at ATMs. It was here that the interchange is not legally regulated and depends only on the MasterCard and Visa.
According to our information, that the owners of informal coalition of the largest network of ATMs in Poland at the moment are banks operating in the Council Bank Cards Editors. It is possible that in the near future, it will join the network of independent owners, such as Euronet and IT Card. These institutions want to join forces and fight for higher revenues. Their primary source of ATM interchange is today, which is in Poland 1.2-1.3 zł in respect of dividends, regardless of the amount.
– This rate puts into question the viability of the business ATMs. Even ignores the need to invest in replacing old ATMs next-generation devices – says Jaroslaw Chrzanowski, president of the company’s IT Card, which owns the Planet Cash network. Experts point out that the biggest beneficiaries of the situation on the Polish market are the banks that have not invested in their own ATMs, but the use of the equipment installed by competing institutions, and with low commission rates restrict itself costs.
– According to our assessment of business economics at today’s rate of payment of fees for the payment of ATMs for banks that do not have their own networks are far too low. In the long run it is not impossible to maintain – says a representative of the bank having one of the largest ATM network in Poland. ATM network owners would like, therefore, that the interchange was as much as in most countries of the European Union, where it realized payment for each machine operator receives 75 cents (currently 3.14 zł), although to achieve this value is not realistic. Although ATM interchange in Poland until recently had a comparable amount of 3.5 zł. This changed in 2010. When payment organizations under pressure from smaller banks have opted for a drastic reduction commission.
Do you now raise them? – Subject ATM business business model is currently under analysis – so the question we answered the press office of Visa Europe in Poland. MasterCard did not want to comment on the matter. However, we know that the topic is very hot, and the conversations between organizations and banks are already underway. Was appointed by the owners of ATMs team aims to increase efficiency pressures on MasterCard and Visa. But raising the interchange is just one of the possible solutions for business profitability ATMs. Another, though less likely option is to introduce surcharge. Such an idea has already been the subject of special study, established in 2014. By the Polish National Bank. It included banks, ATM operators and consumer organizations.
Supporters of the introduction of the surcharge argued that due to the incentive to install ATMs in places where they do not exist yet, or there are few and thus for example in rural areas. Opponents, in turn, argued that it would take place at the expense of cardholders, because they would have to pay more for something that they already pay less. In addition, there is a risk that the introduction of ATMs surcharge to postulate a similar experience with terminal operators for receiving payments in stores. And that would work to the disadvantage of the development of cashless transactions.
Finally, a team led by the central bank decided against introducing surcharge. Belief prevailed that the possibility of levying the fee would do more harm than good. Because even if somewhere there is an ATM, access to cash is easy because of the dense network of branches of banks, credit unions and institutions of the Polish Post. ATM owners today can therefore be difficult to convince the authorities to regulate the statutory surcharge. Especially since the draft EU directive PSD II includes a provision which provides for the prohibition of surcharge for derivative transactions that are regulated. And to such instruments in a few months will include debit and credit cards.
Regardless of the adopted solution, change the present state of things would affect negatively the image of financial institutions in Poland. Therefore, it is possible to yet another solution to the problem, which is a combination of ATMs in the national network and bypass processingowych charges that both ATM owners, as well as the card issuer shall pay to the provider organization. The fact that such a solution can be effective, shows an example of Blik, ie mobile payment system recently launched by the six major banks. Blik offers cash withdrawals from ATMs using your phone. Although the rate of interchange is in this case 1.2 zł, ie the same as for cards, banks – due to the omission of fees for MasterCard and Visa – more profitable.
Banks earn less on cards
Two years ago, interchange, or commission which shopkeepers disperse to the banks of the acceptance of payment cards in Poland amounted to approx. 1.6 percent. and was one of the highest in Europe. In 2012. NBP has shown, however, that the high costs of operating cash transactions are a barrier to the development of retail and service outlets in which to pay the card. Set up a team that had to find a compromise. His work, however, boycotted MasterCard, arguing that by contributing to the body to incur the accusation of collusion on prices. Eventually, a compromise is not included, and traders persuaded Parliament to regulate this matter by law.
In the meantime, payment organizations have decided on a voluntary reduction from 2013. Interchange to 1.2-1.3 percent. A few months later, the draft amendment to the law on payment services, in which a commission from card transactions imposed limit of 0.5 per cent., Which came into force in July 2014. In contrast, at the end of 2014. Prepared another amendment, which reduces the interchange to 0.2-0.3 percent. respectively for debit and credit cards. These rates are effective from the end of January.
The President of Citi Handlowy: There is nothing for free
We are moving away from the “banking for zero”, which was carried out in the past by some of the sector. Because there really is no such thing as a service for zero. Services for which no charge, the services for which charges elsewhere – says in an interview with the DGP and radio Troika president Citi Handlowy Sikora. It refers also to the problems frankowiczów. – I agree that the crisis nadszarpnął image francs bankers, but it kept the politicians and the media need to lending in francs – he believes. And reminiscent of the benefits to customers who for many years to pay less than customers in debt payments in dollars. – These costs may not fall only on banks – sums.
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