Why I would not pay new ATM fee

You have heard the news. There is no reason telling you that the Central Bank of Nigeria (CBN), had re-introduced fee on “Remote-on-us” ATM cash withdrawal transactions. From September 1, 2014, ATM users will be charged a flat fee of N65 for withdrawal made from other banks’ ATMs.

However, this only applies from the fourth withdrawal in a month to the cardholder, thereby making the first three withdrawals from other banks free. Translation: If you have Skye Bank ATM card, for any circumstance, you could not locate ATM belonging to Skye Bank, and you have to withdraw cash on three occasions in September from GTB ATM, you are not liable to pay ATM fee. However, if you make cash withdrawal on the fourth occasion within September, you would be charged N65.



Why is this so? The CBN ruled so. Nevertheless, how did we get to this new experience? Come with me, please. In November 2011, the CBN’s guidelines mandated Independent ATM Deployers (IAD) to deploy offsite ATMs; that is, in addition to the banks’ on-site ATMs. The CBN then asked the banks and IADs to charge bank customers or anyone who makes cash withdrawal from the ATM N100 per transaction. You would think this would allow the IADs and banks to recoup their investment. You are wrong.


A year after this pronouncement, the CBN approved the immediate removal of the N100 charge on customers who use the ATMs of banks other than theirs. Why?  It would enhance financial inclusion and encourage ATM usage in line with the cashless programme. Translation:  If you make cash withdrawal on any ATM in Nigeria, either off-site or on-site, no matter where you make the cash withdrawal, you will not be subjected to any charge for using the ATM. That was the commitment.

Within two months, the banks re-programme their ATMs and the N100 charges ceased. This step encouraged ATM usage. The decision converted several bank customers who had vowed never to use the ATM. Some of these customers would make cash withdrawal as many as 20 times a month. That, briefly, was how the ATM fee was removed.

Fast forward to 2014: Now that the fee has been re-introduced, why should I pay? To convince bank customers to pay the ATM fee, Group Managing Director, Access Bank, Herbert Wigwe said the CBN took the decision to cover remuneration of the switches, ATM monitoring and fit-notes process by acquiring banks. That is what my coach would call a sales pitch.

Yes, the switches should earn their wages. However, what is ATM monitoring? Who monitors the ATMs? is the Police, Army, SSS or vigilante group? Two deadly incidents happened recently when two separate ATM users were attacked [one in Bariga area and the other at Ikorodu]. They were killed shortly after making cash withdrawals.  Were there monitors at that time, the two ATM users would be alive.  Besides, most times, the ATMs are poor-lit. The ATMs have poor cladding. And poor security surveillance. Except for camera.

Gosh, what do you call fit-notes processing? What are they processing? Who is processing what? When was it processed? How many banks have cash processing machines? How many cash processing machines do the CBN has? What is the age of those machines? Dear ATM users, are you not witnesses? Do you not know that the ATMs do not vomit ATM-fit notes? Do you not know that the ATMs are poorly lit? Do you not know that the ATMs are “out of service” half of the time? Do you not know that most of the time, the ATMs spew jagged edge Naira notes?

However, this goes to show that no real processing take place. Therefore, since the process of the processing is not handled properly, processing fee should be nullified. That is why I would not pay the new ATM fee. Instead of paying, I would stick to my bank ATM come rain, come shine. I implore other ATM users to do the same.    

CREDIT: http://www.financialtechnologyafrica.com/