AIB to raise business Transaction Fee charges by up to 165%

“We understand that the Government wants the banks to be profitable and stand on their own feet, but at what cost to SMEs, family businesses, consumer prices, local communities and local jobs?” - Tara Buckley.

AIB is raising its charges from 1st June this year for business customers and the LVA and RGDATA are among a number of representative bodies that have contacted the Finance Minister Michael Noonan asking him to intervene to stop the increases on business current accounts by up to 165%.

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In a letter dated 21st March AIB informed its business customers that all notes lodged after 1st June will be charged at the bank’s new standard rate of 45 Cent for notes lodged, up from the banks’ primary rate of 17 Cent and secondary rate of 25 Cent which will no longer apply.

“We have contacted the Minister objecting to this outrageous increase for cash businesses and asked him, as essentially the sole shareholder, to intervene and prevent this,” LVA Chief Executive Donall O’Keeffe told Drinks Industry Ireland.
RGDATA Director General Tara Buckley added, “Our members are extremely angry at this news. It is incomprehensible that AIB is taking this action at a time when family-owned shops are fighting for survival with turnover in 2012 down on 2011.
“Independent shops have taken every step to reduce their costs and manage their businesses more efficiently. Margins in the trade have been squeezed and many shops are barely breaking even”.

RGDATA told Minister Noonan that this decision by AIB to increase charges to members by 165% in some cases – will cause severe hardship and difficulty.

“It will cost jobs, put some shops under severe pressure and will have an impact on prices and competitiveness,” said Tara Buckley.

RGDATA also slammed the “take it or leave it” attitude displayed by AIB, stating, “This is an affront to our members many of whom have remained loyal to AIB during these extremely challenging times”.

It described the move as “cynical in the extreme” as AIB is aware how difficult it will be for many of these customers to change banks.

“This is adding considerable stress onto business owners who have been long-standing and loyal customers of AIB,” she said.
RGDATA & the LVA have both urged the Minister to step in and stop this attempt by AIB to dip their hands further into the pockets of struggling family businesses.

“We understand that the Government wants the banks to be profitable and stand on their own feet, but at what cost to SMEs, family businesses, consumer prices, local communities and local jobs?” asked Tara Buckley.

RGDATA added that if the Government genuinely wants to support Irish family businesses and local jobs then it must use its powers to stop any bank from forging ahead with increases in charges of this magnitude.

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