Of course – some people heard this and assumed that it was “new debit card charges in Budget 2016 “- but there’s more to this …..
The annual total ATM charge of 12c per transaction will be capped at €2.50 for a basic ATM card and €5 for debit cards. Some people may not even be aware that there was already an annual government charge on ATM or Debit cards. Most people, if they noticed it , probably assumed the charge was just another bank fee.Overall -this alteration meant no change for most people and a possible small reduction in debit card stamp duty for others. It was introduced to try and reduce the use of cash.
If you have a full debit card – you would need to do 42 ATM transactions to run up annual stamp duty charges of €5 – if you go over that you will still only be charged €5 by the government. Anyone who withdraws cash from an ATM less than 41 times a year will end up paying less in stamp duty than under the old system .
Important : This government charge on debit cards and ATM cards should not be confused with the charges that many of the banks make when you use an ATM (sometimes as much as 35c !)
See more here about Bank Charges in Ireland
So – just to clarify – the ATM charge is 12c per cash withdrawal with a cap of €5 in a year if used as both an ATM and a Point of Sale card. This will be charged annually by your bank for the previous year.
The ATM charge will only apply to cards used by Irish residents (the same as the stamp duty charge) . It will not be charged on cards used by tourists/visitors with an address outside Ireland.