Business owners demand a ceiling on bank fees

Merchants and business owners demanded a ceiling on bank fees for their commercial transactions and bank accounts, as it costs them large sums of money annually, especially for startups or small companies.

They confirmed to Emirates Today that there is a steady increase in fees on an almost annual basis, to the point that one of the banks raised fees related to the “merchant” agreement twice within six months.

They explained that personal transaction fees for individuals were regulated years ago, which provides them with comfort in dealing with banks in this matter, so it is better to set a “reasonable” ceiling for fees for the business sector.

They pointed out that online banking services have become less expensive for banks compared to going to branches, so banks are expected to reduce fees, but what is happening is the opposite, as a large percentage of banks impose fees on their online banking transactions, such as opening an account, transferring money, or providing services. Points of sale, in addition to the fees charged when dealing directly with branch counters.

For his part, banking expert, Ahmed Youssef, said: “The market has a large number of banks competing in providing their services, and some banks provide services to businesses at reduced fees, or exempt them from them completely, such as financial transfers, for example.”

He added: “Fees constitute an important part of banks’ revenues, and market controls make the differences simple. There are banks that attract customers with reduced fees or by eliminating them completely, but on the other hand, there are banks that believe that the speed of their services and their availability around the clock deserve a certain fee.”

Youssef explained that “some banks are suitable for small businesses, and others target large companies, so it is difficult to impose a specific fee on the services provided to companies without taking into account their size.”

For her part, banking expert, Sheikha Al-Ali, said: “Individual transactions differ from companies, as the latter have businesses, revenues, and financial flows that allow them to pay the fees for the services they obtain, unlike individuals, most of whom depend on the monthly salary.”

She added: “The local market has more than 50 banks that can be easily moved between, if the business owner sees that the fees are high and not appropriate for his company’s income, but on the other hand, we find that most banks appoint what is known as a business manager for companies that have a certain work volume, to facilitate dealing procedures.” With the bank, in the event of requesting financing or otherwise, and this is also a cost for the bank, in addition to the normal operating cost that requires continuous support for the services provided, to be available around the clock, such as financial transfers, as well as clearing checks, opening accounts, and services. (Merchant) and others.

Al-Ali pointed out that “the fees imposed on business banking services in the UAE also suit the dynamism of movement, the speed of growth, and the increase in financial flows and expansions, and all of this is involved in banks, whether through financing or providing various services, and it is natural for banks to benefit from this through fees.” Or interest, if loans are granted.”

. Business owners: There is a steady increase in fees on an almost annual basis, and one bank raised them twice within 6 months.