BML scraps cross-border fee on overseas debit card ATM withdrawals

Bank of Maldives (BML) has decided to stop charging its cross-border fee on cash withdrawals made from ATMs overseas using debit cards, with the change taking effect from Thursday night.

BML said the removal of the fee would allow Maldivian students studying abroad to use the full monthly USD 1,200 limit allocated for living and educational expenses without incurring the additional charge.

The bank said the change would provide relief to students overseas and their families.

The cross-border fee, also referred to as an optional issuer fee, is charged by a card-issuing bank on certain foreign currency transactions or transactions carried out outside the country.

When a cardholder makes a purchase or withdraws cash in a currency other than the base currency of the card or the linked account, the transaction is processed through an international payment network such as Visa or Mastercard.

Banks may charge a percentage of the transaction amount as an optional issuer fee to cover costs associated with processing such transactions.

BML said cross-border fees are commonly charged by banks internationally for this type of transaction.

The bank has charged the fee on such transactions since introducing its card services, but said it would discontinue the charge on overseas ATM withdrawals made with debit cards from Thursday night.