Government eliminates double commission for withdrawal of cash from ATMs belonging to another financial institution

The Council of Ministers regulated, though a Royal Decree on financial issues that will come into force on Saturday, commissions on withdrawing cash from ATMs from a financial institutional other than the issuer of the debit or credit card.

The Vice-President of the Government, Soraya Sáenz de Santamaría, pointed out that the measure responds to the social concern generated in recent weeks over the possibility that financial institutions will charge a double commission on the withdrawal of cash.

The only bank that can charge a commission is the bank issuing the card, and never the bank that owns the ATM where cash is withdrawn. Furthermore, the bank that issues the card cannot charge its client more than the bank that owns the ATM charges it for this operation", she explained. The Royal Decree offers security and protects the consumer, claimed the Government Spokesperson.

The Minister for Economic Affairs and Competition, Luis de Guindos, pointed out that more than 900 million transactions to withdraw cash from ATMs take place in Spain each year and that it was necessary to act swiftly to resolve this issue.

The minister highlighted that the new model establishes a series of mechanisms to guarantee transparency and maintain competition. The institutions that own the ATM must inform users of the commission that they will charge to their bank, and the commissions agreed between institutions cannot be discriminatory and will be monitored by the National Markets and Competition Commission. Financial institutions must adapt to this new plan prior to 1 January 2016.

Luis de Guindos specified that when clients use an ATM belonging to another institution that is not the issuer of the card, they must be informed, prior to withdrawing cash, that the institution that owns the ATM will charge their bank a certain sum and that the latter will pass this commission on either partially or in full. Whether the institution passes this commission on or not will depend on what the client has agreed with their bank. "In short, under this new model, citizens will not be charged a double commission", he stressed. The Minister for Economic Affairs expressed his conviction that commissions will be less than at present.

Also in relation to the financial sector, the government has enacted, by Royal Decree, a Law on Savings Banks and Bank Foundations to regulate the reserve fund that these foundations must constitute. Furthermore, the text defines the concept of Public Interest Entity, which are subject to a stricter auditing system.