2017-09-20
Limitation of the price of basic payment services to remain unchanged next year
The Board of the Bank of Lithuania has decided that the price of basic payment services provided to residents by commercial banks and credit unions would not have to exceed the established limit – EUR 1.5, for low-income people – EUR 0.75. A decision to leave the composition of the basket unchanged was taken at the same time.
‘The price of the basket of basic payment services was first limited recently, but this has changed essentially the market. Residents who have chosen the basic payment account service no longer need to pay for every move when making transfers or cash withdrawals; faulty fees for the incoming payments have also disappeared. Credit institutions in turn have proposed even more generous and cheaper payment plans, many of which provide unlimited electronic payments in euro across Europe,’ says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
According to him, discounts or customer loyalty programmes provide the possibility to be rendered basic payment services at a price even below the established limit or at no cost at all (e.g. for youth, seniors). This increases the availability of payment services.
As of 1 January 2018, banks and credit unions will, like now, have to provide their clients with the possibility to get all basic payment services for a monthly fee not above EUR 1.5 (for low-income residents – EUR 0.75).
Like now, the basket will comprise the following services:
- Opening of an account;
- E-banking, secure account management and logging into the account means (code card with SMS messages, code generator, etc.);
- Unlimited crediting of received payments in euro;
- Unlimited depositing of cash in a way selected by the credit institution;
- Payment card and payment transactions using a card;
- No less than 10 online transfers of any kind in euro per month, including utility and bill payments, e-invoice payments, transfers within the institution and to other payment service providers, and direct debit transactions;
- Cash withdrawals – no less than EUR 550 per month within a network of the bank’s ATM or in a manner selected by the credit union.
According to the Law on Payments, the Bank of Lithuania must annually set the maximum amount of monthly fee for the basic payment account service and its composition; thus the composition and price, approved by resolution of the Board, will be effective by 31 December 2018.
A representative survey conducted by the company Baltijos tyrimai in May–June of this year showed that the new basket pricing was beneficial for the majority of those who chose it. According to the survey data, 49 per cent of clients who chosen a basket of services offered by credit institutions claim that now they pay for payment services less than before, 28 per cent reported that the price of services remained unchanged, while 6 per cent claimed they spend for payments more. Nearly 90 per cent of the respondents indicated that over a month they pay less than or exactly EUR 1.5 for their basket of services, while 6 per cent answered they pay more.
More information on the basic payment account service is available here