Zimbabwe News and Internet Radio

CABS hikes service fees

By Fradreck Gorwe

CABS has reviewed charges for mobile banking, over-the-counter and ATM transactions, internet banking, merchant point of sale (POS) and monthly service charges barely a month after another round of charges that took effect since January 11, 2020.

Old Mutual’s mortgage lending unit Central African Building Society (Cabs)
Old Mutual’s mortgage lending unit Central African Building Society (Cabs)

The new service fees to take effect from March 9, 2020, will see some chargeable thresholds being revised upwards possibly as a cushioning strategy for the banking public.

Under the new tariff system, over the counter (OTC) cash withdrawals shall attract a service fee of 2 percent of the amount withdrawn, minimum being $10.

The minimum chargeable figure has been revised from $8. The charge on ATM cash withdrawals effective March 9, will be 1,5 percent of the amount withdrawn, minimum being $8. Again the minimum chargeable had been revised upwards from $6.

OTC bill payments will include 1 percent of the amount payable, with a minimum being $20. This is the same with OTC internal transfers to all accounts.

With regard to mobile banking, internal transfer and bill payment charges alike have been revised from 0,5 percent of the amount, minimum $8 and maximum $20, to 1 percent of the amount transferred from $10 and above.

ZIPIT charges have been kept at 0,5 percent of the amount with only the minimum chargeable revised upwards from $10 to $20. Ecocash-Bank to wallet have also been kept at 2 percent of the amount transferred but with the minimum chargeable revised upwards from $8 to $20.

On internet banking, bill payments will no longer attract a flat of $10 but 1 percent of the amount being paid, minimum being $15.

Similarly, internet banking RTGs will no-longer be charged a flat fee of $30 but 1 percent of the amount in question, minimum being $30.

Point of sale (POS) purchase, CABS on CABS and CABS on others charge will be 1,5 percent of the amount payable from $10 and above. Initially, 0,75 percent of the amount was charged for transactions between $3 and $20.

Zimswitch fee for transactions up to $20 will attract a charge of 30 cents, while those for amounts above $20 will attract a charge of $4,65.

The service fee adjustments effected by CABS, though might at a glance be unsustainable to banks which may claim to incur large amounts on the procurement and distribution of cash as well as upgrading of ICT technologies, are reasonable and hence supportive to the financial inclusion cause.

Arguments may be forwarded of some populist schemes by banks but with the present and crucial thrust on catching up with global trends, charges tend to create a win-win environment for both those offering the service and the banking public itself composed of ordinary people.

The Central Bank often castigated unjust and exorbitant bank charges for being an impairment to a thrust on financial inclusion and promotion of plastic money usage. The Herald

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