ING and the ATM war: the 2 euros nobody wants to pay

ING and the ATM fee: the 2 euros the bank doesn't want to absorb

The bank that built its fruta by advertising no fees faces its most awkward bill: 2 euros every time its customers withdraw money from another bank's ATM. CaixaBank set the price. Santander and BBVA copied it. And ING, with three million customers acquired through advertising, has to decide whether to absorb those 2 euros of the ATM fee or pass it on to the cardholder. The decision, amidst regulatory changes, sparked a dispute that reached the Bank of Spain.

The interchange fee: the €0.65 that ING already covered

Before CaixaBank put a price on its ATMs, the system was based on an interchange fee: the customer's bank paid the ATM owner 0.65 euros per withdrawal. That's what ING had been covering, which is why its current account was free for the account holder. The new model changes the rules: the ATM owner sets the fee, and the card-issuing bank cannot charge the customer more than they are charged. If CaixaBank claims 2 euros, ING can absorb them, cover the 0.65€ again, or pass the entire charge onto the person withdrawing the money.

Therein lies the crux. And that's where the numbers start to not add up, because the detailed breakdown of who pays what, item by item, circulates in the most technical corners of the issue and leads to more than one surprise.

Who charges what: from CaixaBank's €2 to Red6000's half euro

The numbers, laid out, explain better than any press release why the customer ends up paying twice if no one steps in:

• CaixaBank, Santander and BBVA: 2 euros per withdrawal for customers of other entities.
• Interchange fee previously covered by ING: 0.65 euros per transaction.
• Red6000: 50 cents for withdrawing 20 euros, whereas previously, for amounts under €60, 2 euros were charged.

One figure is puzzling: some people have withdrawn €60 from a Bankia ATM with an ING card, and although the screen warns of a 2 euro fee, the charge hasn't materialized. At least, not yet. The logical question is whether that warning is a threat or a bluff.

Price-fixing pact among the big three?

That the three largest Spanish banks make the same decision within a few months and charge the same amount has implications. Some interpret it directly as a possible price-fixing pact; others dismiss it as a logical reaction to the new framework. What the Bank of Spain did make clear is a limit: only one commission can be charged, and the amount the ATM announces to the user is the maximum ceiling that their bank can pass on. If the ATM does not inform of this amount before the transaction, no commission is valid.

With those rules, ING announced its fee schedule to pass the commission onto the customer. Then it removed it from the website. And we were back to square one.

Those who stay: "ING doesn't rip you off"

Despite the noise, a good portion of the customer base remains. The argument is repeated: the others are worse. Those who have been charging for direct debits for years receive a monthly deduction for electricity, water, or mobile phone bills, and that weighs more than a couple of euros. Others apply a simple tactic to minimize the damage: withdraw all the cash needed for the month at once and pay the rest by card.

Facing them are those who do move: accounts migrating to EVO —which absorbs the 2 euros, but only for withdrawals over €120— or to the online offering from Santander and Openbank. Most, however, are cautious and haven't fully committed their main salary account elsewhere.

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Years have passed since that customer announced their departure over two euros, and the issue remains unresolved. Will ING absorb the cost, or will the customer end up paying for every withdrawal, as those who take money out in Australia do without batting an eyelid?