Thursday 23 May 2013

"Contactless Payment" wont be a replacement for carrying cash

30euro max now in Ireland
Just saying.... "Contactless Payment" wont be a replacement for carrying cash unless it remains free per transaction.

What the banks aren't actively saying about it now, is that after August 2016 it will cost 20c per transaction at home (AIB), but already costs 45c per transaction minimum in non-eurozone (upto 11euro max, based on 1.75% of transaction)!

Here is a round up of some of the Irish Bank's details on Contactless Payments charges:
Note: the charges aren't that easy to find!

UPDATE 20160806

AIB will start charging 20c per local transaction from 26th August 2016.
BOI currently charge 1c per eurozone contactless transaction. They will charge 2% of transaction value to a maximum of €11.43 per transaction for cross-border transactions.  Cross-border essentially means non-eurozone.

The banks are already charging from non-Euro based transactions, so if you use contactless payment in the UK, for example, you will be charged the minimum 45c per transaction... So your 99p coffee will cost you 1.62euro (1.17euro for the coffe + 45c for the transaction)!

In Ireland, the government as made it so that the max transaction for contactless payments is 30euro (twice the previous maximum) following the October 2015 budget.

Of course, if you meet the banks strict requirements to qualify for free banking, contactless payments will be free... but never in non-eurozone payments! 

Always read the #smallprint!

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