Bank transaction charges to be slashed
Greek citizens are set to benefit from significant reductions in banking transaction fees as a sweeping legislative package, designed to ease financial burdens, comes into effect in January. Announced by National Economy Minister Kostis Hatzidakis, the reforms are expected to deliver annual savings of €150 million, addressing long-standing frustrations over excessive banking charges on everyday transactions.
Hatzidakis described the measures as “simple yet necessary steps” to align the banking sector with the needs of ordinary citizens.
The measures include the abolition of fees for payments to public entities, utility providers, and insurers when processed through digital channels such as web or mobile banking.
Currently costing up to €0.60 per transaction, these fees will now be eliminated for individuals and self-employed professionals, though businesses will remain excluded. Hatzidakis framed the initiative as a response to a public outcry, calling it “a message of justice and common sense.”
Further reductions will affect domestic wire transfers, where new regulations cap fees at €0.50 for both incoming and outgoing transactions below €5,000. This represents a reduction of up to 80%, depending on the bank.
Rural communities will also benefit, as cash withdrawals from ATMs in areas serviced by a single bank will no longer incur fees – charges that currently vary from €0 to €3 per transaction. Additionally, prepaid cardholders will see a complete removal of charges for loading amounts up to €100.
These consumer-focused initiatives come alongside an expansion of the IRIS instant payment system, with daily transaction limits increasing to €1,000 from the current €500. Designed to encourage wider adoption of low-cost digital payment options, IRIS already boasts over 3.4 million users among individuals and 560,000 self-employed professionals.
In a broader push for transparency, the government has mandated the Bank of Greece to launch a web platform enabling consumers to compare deposit rates, loan terms, and fees across institutions. Scheduled for January 7, this move aims to bolster market competitiveness.
The legislation further includes provisions to deregulate lending by credit companies, expanding their ability to serve small businesses and foster market competition. Meanwhile, lower point-of-sale (POS) fees for transactions under €20 will be extended to promote growth in Greece’s vibrant small retail sector.
The reforms are expected to reduce bank revenues by millions, with €95 million projected in lost fees from wire transfers alone. For consumers, however, they signify meaningful progress toward a more equitable financial landscape.
Kathimerini
