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An AIB ATM Gareth Chaney/Photocall Ireland

AIB loses money on ATM withdrawals

The Finance Minister has said that he cannot intervene in AIB’s plan to raise fees.

IT COSTS IRISH banks more money to carry out ATM transactions than they make back in charges.

AIB recently announced that they will be increasing their banking charges from the end of August.  However, an AIB spokesperson has confirmed to that the even with the increase from 20c to 35c, the bank loses money on the transactions.

For every ATM transaction the actual cost of providing the service is greater than the fee charged to customers for availing of the service.

The spokesperson said that no breakdown of how much each transaction cost was available.

The issue was raised in the Dáil this week when Sinn Féin TD Jonathan O’Brien asked the Finance Minister Michael Noonan for his views on the issue.

Noonan said that he would not be in contact with the bank and that the State can not “intervene in the day-to-day operations of the bank or their management decisions”.

“I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.”

Noonan went on to say that the increases had been approved by the Central Bank and that work was underway to improve Ireland’s payment infrastructure under the National Payments Plan.

Read: AIB is increasing its bank charges from the end of August

Read: Noonan: Not all banks are using confidentiality agreements with borrowers

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