THE VM Group has announced that it will discontinue picking up the tab for its customers when they use automated banking machines (ABMs) of other institutions, in a move that will save the company up to $30 million annually.

VM operates a network of 30 ABMs islandwide, and according to the group that carries operational costs in excess of $100 million annually, including the hefty sum in fees paid mainly for transactions done on the MultiLink network – an islandwide pool of 700 shared ABM terminals.

“Previously, VM Building Society absorbed the cost for members to use competing financial institutions ABMs. This amounted to several million dollars being paid to other financial institutions each year. In order to ensure that your VM Building Society continues to grow and thrive, so that more lives can be transformed, we can no longer absorb these costs,” the VM Group told its customers in an advisory.

It said that come October 1, customers will be charged $51 for withdrawals at non-VM Building Society ABMs. At the same time, VM debit cards used on non-VM point-of-sale (POS) systems will cost $11.50 at that time.

VM Building Society and Jamaica Money Market Brokers (JMMB) were the only two financial institutions that offered a debit card for which their customers were not charged a transaction fee at either an ABM or POS machine. The costs for some debit card transactions such as balance enquiry, declined withdrawal and declined transactions at POS machines continue to be waived.

But in a move to assuage their customers, the VM Group has posited transactions done on non-VM machines are still among the lowest in Jamaica.

Comparative fee structures from data posted by the Bank of Jamaica listed CIBC FirstCaribbean International Bank (CIBC FCIB), Jamaica National Bank (JN Bank), and Sagicor Bank Jamaica (SBJ) as previously having the lowest withdrawal fees at non-proprietary ABMs with their fees set at $59.23 for visa debit/ABM card.

VM fees are the lowest fees within the sector for transactions at competing financial institutions ABM with its current personal savings account. Aside from The Bank of Nova Scotia’s seniors account attracting a fee of $31 for non-propriety ABM withdrawals, all other personal Scotia accounts attract a fee of $60 for withdrawals at non-propriety ABMs. The National Commercial Bank (NCBJ) also charges $60 for withdrawals at non-propriety ABMs. First Global Bank currently has the highest withdrawals fees at other ABMs costing its customers $65 for withdrawals.

VM has the lowest point-of-sale payment transaction fee at $11.50. JN Bank has the second lowest fee for POS transactions at $11.85, and NCBJ, with POS transaction costs between $11.94 and $15. Scotia Jamaica Building Society’s (SBJS) POS machine transaction fees are the highest among all financial institutions at $59. First Global Bank and Jamaica Money Market Brokers (JMMB) POS transactions however remain free.

As for same bank ABM charges, Scotia’s day-to-day current account holders pay $25 for withdrawals from its own ABMs – the lowest on the market for same bank ABM transactions – and $50 for savings account holders – the highest fee for same bank ABM transactions.

VM Building Society, CIBC First Caribbean, JMMB and JN Bank have not attached a fee to customers using their ABMs. VM advises its customers to make use of its ABMs to avoid fees.

“We encourage our members to manage their withdrawal transactions in a manner that will allow them to minimise the transaction costs as best as possible. This includes using their VM Express 24 Debit Cards at VM Building Society ABMs and minimising their visits to other ABMs where possible,” The VM Group said in a written response to the Jamaica Observer.