By Vangelis Dourakis

January 20 stands out as a “key” date for the implementation of the new charges in banking transactions: From that day onwards, a number of commissions are zeroed out, while some others are “scissored”. So when the measures recently adopted by the Government for the new limits of bank charges are activated, is determined through what is provided in the recent law 5167/24.

There it becomes clear that all banks will have to comply with the provisions of the law on the 20th of this year.

In particular, in the relevant amendments that had been introduced in n. 5167 there is a provision which states “the validity (s.s.: of the new limits for charges) starts one (1) month from the publication of this in the Government Gazette”.

What are the provisions for zero and reduction of bank fees

The law was therefore published in the Government Gazette on December 20 and therefore the measures included in it are activated by the banks on January 20.

So what changes for domestic bank customers after the current 20?

Specifically, it adopts:

  • Zero charge for paying bills and debts to the public, insurance funds, OTAs, energy, water supply, telecommunications and insurance companies, through web-banking and mobile-banking. For example, today the fee for paying DEKO or OTA bills is usually 0.6 euros per transaction.
  • 50% to 80% reduction in fees for sending money to another bank. Specifically, a maximum fee of 0.5 euros for sending money (outgoing remittance) and 0.5 euros for receiving money (incoming remittance) is established, for amounts up to €5,000 per remittance, for natural persons and freelancers, between banks. It covers both simple remittances and direct credit transfers (SEPA). This corresponds to a reduction in the cost of said fees from 50% to 80% depending on the bank and the type of remittance (from 1 to 2.5 euros that it costs today). In addition, under Regulation 2024/88, the equivalent burden of direct credit transfers to simple credit transfers is foreseen.
  • The fees for cash withdrawals in municipal units where there is an ATM of only one banking institution will now be zero, where currently the corresponding fees reach up to 3 euros per transaction. Accordingly, zero charges are being established for balance inquiries at any other bank’s ATM across the country, where the cost currently stands at 0.2 euros.
  • The 50% reduction in commissions for purchases from 10 euros via POS in the so-called “small retail” is extended to 20 euros. Here the ceiling of charges is set at 0.5 euros.
  • Zero charge for loading prepaid cards for a loading amount of up to 100 euros (from about 1 euro per 100 euro amount that applies today).

When do IRIS limits increase?

The use of the IRIS direct payment system is being expanded as the daily transaction limit is increased to 1,000 euros from the current 500 euros.

Specifically, distinct daily transaction limits are established: 500 euros between citizens and 500 euros for payments to freelancers.

It is reminded that citizens do not pay any commission for transactions between themselves, while freelancers have lower commissions compared to the ones they pay if the same transaction is done via POS.

The IRIS system has already become mandatory for freelancers and within 2025 it will be mandatory for all businesses as well.

The number of users is 3.4 million. for IRIS among citizens and 560,000 for freelancers.

The activation of the new limits is estimated to be completed within 3-6 months from today.