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BDO cash card holders to pay P2 per ATM withdrawal

Rappler.com

SUMMARY

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Sy-led BDO Unibank, the country's biggest bank in terms of resources, confirmed it will impose a P2 fee for every withdrawal made by holders of cash cards via Automated Teller Machines (ATM) starting September 1

MANILA, Philippines – Sy-led BDO Unibank confirmed it will impose a P2 fee for every withdrawal made by holders of “cash cards” via Automated Teller Machines (ATM) starting September 1.

“Cash card” clients may or may not have opened a regular deposit account, which requires the client to go through the rigors of showing documentary proofs of identity, address, tax payments, and sometimes, credit-worthiness.

Nonetheless, cash card clients enjoy the security and convenience of an ATM card, which can be treated like a wallet but doesn’t earn interest. Their ATM cards are re-loadable electronic debit cards — just like prepaid phone credits — that can be used to withdraw money and pay for shopping.

Usually, cash card clients are recipients of funds from parents, or have employers that set up electronic payroll accounts but do not want the burden of maintaining minimum deposit balances required by banks. 

No ATM fee for regular depositors

The new fee, however, will not be imposed on Banco de Oro (BDO) deposit account holders — or those who maintain interest- or non-interest- bearing savings and/or checking deposit accounts — with any of the bank’s branches nationwide.

“The P2 fee will only be effective on withdrawals of clients using Cash Cards (or BDO prepaid cards), similar to what other industry players are implementing. This is to partially recover our cost on cash handling. BDO account holders are NOT affected by this development,” Jaime Nasol, head of BDO’s cash management services, said in a statement on Monday afternoon, August 20.

Confusion

The bank official issued the statement in reaction to an Interaksyon report titled “BDO imposes P2 fee for every depositor’s ATM withdrawal.”



This led social media users to post angry or annoyed reactions.













By early evening Monday, Interaksyon issued an apology for the confusion.




To banks, ATM transactions are generally cheaper and are more convenient for individual clients than over-the-counter transactions in bank branches.

To recover ATM transaction costs, banks tend to require regular account holders to maintain minimum deposit balances. BDO’s cash card holders are not compelled to maintain minimum balances and only pay fees when they transact over ATMs not by BDO.  

BDO is the Philippines’ biggest bank in terms of resources, loans, and deposits. It has one of the largest distribution networks, with more than 740 operating branches and over 1,700 ATMs nationwide.

It is also a member of the SM Group, one of the country’s largest and most successful conglomerates with businesses spanning between retail, mall operations, property development, and financial services. – Rappler.com

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