Come mid-September, some businesses may be charged by financial institutions to transfer fees through the new BiMPay platform, while individuals continue to access the service free of charge, the Central Bank of Barbados said on Monday.
Governor Dr Kevin Greenidge told reporters that banks and credit unions will be allowed to make requests to the Central Bank on charging businesses fees.
“While we are onboarding and going through these things, we have directed that no financial institution may charge any customer any BiMPay fee until September 15 – not individual, not a small business, not corporate.
“Before any fee is charged, three things must happen: the financial institution must submit the proposed fee instruction to the Central Bank for review, the review must be issued with no objection (and) the institution must then tell the customers what it intends to charge before charging them, and then that goes in effect in September.”
Insisting that BiMPay was built to be a low-cost payment service, the governor added: “Before BiMPay, [financial institutions] would charge fees for different transactions, where a transfer will cost a few cents. We have said there can’t be any fees on digital transfers for individuals, so that will not change. The app remains free to be used by anyone, and when we approve the fee structure, individuals will also remain free. That’s the commitment.
“Now, based on small businesses, based on their size, we expect from almost zero to a low fee, and that when you get higher with a corporate company, the banks may charge a fee for transferring, but that’s at the corporate level.”
Speaking to journalists at a press update on the first month of BiMPay, he stressed that the Central Bank currently was not charging any customers fees: “Not to send a payment, not to receive a payment, not to raise an issue, not to resolve a dispute.We do not receive a cent from the transactions.
“For individuals, BiMPay is absolutely free. It was built that way and intends to stay that way. For micro and small businesses, our expectation is that BiMPay fee will be free or low cost, depending on the size of the business, and we hold the financial institutions to that standard. Corporate customers, large businesses, institutions may charge them a fee, but understand that fee is not a Central Bank fee. That’s an institutional fee.
“I have directed also that no institution charges any customer a fee or BiMPay-related transfer fee, or to raise the issue, or to resolve the dispute by raising for such a transfer. That is directly enforced now, and every institution has been required to confirm in writing.”
(JB)
