Vietnamese banks to charge ATM fees

Vietnamese banks are seeking to introduce ATM charges to avoid big losses on ATM services.

Members of the Viet Nam Bank Card Association have agreed to seek permission from the State Bank of Viet Nam to charge fees on all ATM transactions.

Currfently, banks only charge a fee for cash withdrawal if the card holder is a customer of another bank.

The fees collected would be used for expanding networks, upgrading technology and equipment, and other infrastructure works, the VBCA said.

Some banks have said that they want to collect the fees because they are making losses on the service.

The cost of installing and maintaining ATMs was increasing every year, they said. Annual maintenance alone cost VND500 million or US$24,000 on top of others like the cost of renting data transmission lines and checking cash. They also had to pay millions of dong to rent a place to install an ATM.

Vietnamese users are yet to get used to paying with ATM cards. Many withdraw their money as soon as it comes into their account, keeping banks from profiting from it.