DUBLIN, Ireland–Plans by 11 credit unions in Ireland to join together and, for the first time, jointly issue a MasterCard debit card, have run into a snag. Ireland’s Central Bank said the debit card and its fees have not yet been granted approval.
The credit unions, which represent about 350,000 members in all, had announced a first-ever collaboration to roll out the debit cards through a not-for-profit organization called DCG Card Services, which would manage the product. Participating credit unions include Gurranabraher, First South, Cork, Tullamore, Mullingar, Waterford, St Canice’s Kilkenny, Navan, Tralee, Health Services Staff, Mitchelstown and Ballinasloe.
The new debit MasterCard would facilitate contactless payment and support fully electronically enabled accounts, on-line access and transaction facilities and a mobile app for managing finances on the go. Rollout of the new card was to begin in June.
A spokesman for the Central Bank, however, said debit card services must be supported by an appropriate transaction account, according to The Independent. The Central Bank said it would engage with the credit unions involved to resolve the issue, according to the Independent.
The credit unions involved told the Independent they have kept the regulator fully informed of their plans and that the card launch will go ahead.
Plans call for each of the 11 credit unions to set their own charges, but the average fee will be 40c for making cash withdrawals through an ATM. There will also be a 15c fee for point-of-sale transactions and the same fee for contactless payments.
Most banks do not currently charge for contactless transactions. Bank of Ireland charges 25c for ATM withdrawals, but this can be avoided if €3,000 is kept in the account. It has a €5 quarterly fee that cannot be avoided, the Independent reported.
Some credit unions are set to charge more than this.
Fintan Ryan, the chairperson of DCG and chief executive of Tralee Credit Union, told the Independent the pricing structure for the new payments and debit card account, saying: "We are not proposing to be cheaper than anyone else. There will be no charge for direct debits or online transactions. We won't be the cheapest in the market, but we will be upfront on our charges and there will be no gimmicks like minimum balances or having to make a set number of transactions."
Ryan said an additional ten to 12 credit unions were ready to join the program in the coming weeks.
The product introduction follows a recent REBO (Credit Union Restructuring Board) survey that revealed that 84% of members wanted a debit card from their credit Union.
The 11 CUs involved worked on the development of a more complete banking package as an alternative to the banks’ current accounts.