The Greek government’s most recent decision to impose a cap on bank remittance fees and eliminate all charges for bill payments, is leading credit institutions to make adjustments to their pricing policies. This is a fast-track process set to be completed within the next month, reshaping the payment market.
Banks will be granted a grace period of several weeks to adapt their systems to the new situation, with the new charges expected to take effect by mid-Jan. of 2025, following the government’s submission of a legislative amendment to Parliament on Wednesday, setting maximum limits on consumer fees for specific types of transactions.
Two key changes in the expected pricing policies will substantially impact transaction costs for individuals and self-employed professionals.
Firstly, all remittances can now be executed immediately at the same cost. For transfers up to 5,000 euros, a fee of up to 1 euro will be charged, either fully borne by the sender or shared equally between the parties.
Currently, fees for instant transfers of this amount range between 3.90 and 5.50 euros depending on the bank, this means that the new measures represent a reduction of approximately 75% to 81%.
Secondly, bill payments will be entirely free starting from Jan. of 2025. This applies to payments directed at public entities, utility companies, municipalities, and insurance providers. Presently, the fee per transaction is typically around 0.50 euros.
These new transaction fee limits are prompting banks to revise their prepaid subscription, which are currently offered in the market.
Customers who primarily use these packages for remittances and bill payments may no longer find them necessary, as they will be able to perform the same transactions at the same or lower cost without being tied to a monthly subscription.
