AIB rescinds laser levy following pressure from CSNA
Bank withdraws proposed 20 cent levy on Laser cashback transactions
Print10 October 2008
On foot of a complaint made by the Convenience Store and Newsagents Association, AIB has rescinded its decision to charge retailers 20 cent on every Laser ‘cashback’ transaction. A letter of complaint was drafted and sent to AIB; “Following on from our complaint we had a meeting with executives from AIB which resulted in them rescinding their decision to charge retailers for Laser cashback transactions” says Vincent Jennings, chief executive of the CSNA.
The CSNA’s intervention arose when the bank announced last month that it intended to introduce the new charge on cashback transactions, claiming that the service “provides many benefits for retailers”. The extra 20 cent charge, which would not be passed on to customers, would have been additional to the already existing charges of 20 cent each to retailers and customers for every Laser card transaction, and would have amounted to a total earning of 60 cent for AIB for every cashback transaction.
The CSNA estimated that the extra fee would have cost retailers an average of €3,500 a year, while netting around €1 million per annum in additional revenue for AIB. Had the bank pressed ahead with the charge, shop-owners would have either refused to give cashback or passed the charge to the customer, Jennings said.
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