IMGCAP(1)]
Shanghai-based Pudong Development Bank says it has begun charging customers for some card transactions and related services, the latest Chinese bank to implement such charges. The charge amounts to 5% of transaction amounts up to 50 yuan (US$7.30 or 5.40 euros). The charge applies to ATM deposit and withdrawals, and counter transactions that require the use of debit cards. The bank also will charge 2 yuan per month for text-message notifications of card transactions. The bank says it has issued at least 14.5 million debit cards. Beijing-based Bank of Communication and China Merchants Bank recently started charging for text-message alerts for credit card transactions. "Additional service charges are reasonable [as] banks aim to increase their commission income," Teng Jin, a banking analyst with Beijing-based research company Analysys International, tells CardLine Global. "Initially providing a free service is a strategy by which banks extend their market and customer base." A "large possibility" exists that other banks might assess similar charges after gauging customer reaction, he says.
