Euronet is responding to a recently published YouTube video by Honest Guide (“€3 ATM fee? No, this one charges €175!”), which contains inaccurate and misleading claims about the operation of our ATMs. In the interest of objectivity and protecting consumers from misinformation, we consider it necessary to set the facts straight.
What the video is about
The YouTube video references the experience of a cardholder that withdrew the amount of 1,000 EUR from a multicurrency ATM (i.e. an ATM that offers the possibility of withdrawing both CZK and EUR) in Prague. According to the commentary in the video, the cardholder is a customer of ČSOB and has a Euro account with the bank. However, according to our transaction records, the card used for the transaction indicated a default card currency of CZK, and not EUR.
Since the requested amount was in EUR and the card in CZK, a currency conversion from EUR to CZK was necessary and had to be performed in line with all relevant laws and the rules of Visa and Mastercard. The exchange rate and the fees for this transaction were clearly displayed on screen and the offer was accepted by the cardholder who actively chose to proceed with the transaction.
What the video does not explain:
- The account is in EUR and the card in CZK which we believe must be a setting put in place by ČSOB
- A euro withdrawal transaction with a card in CZK requires a currency conversion from EUR to CZK. This is the reason why the ATM offered a currency exchange
- The bank needs to convert the amount from CZK to EUR to debit the euro account
- The total charge paid by the cardholder is a combination of the FX margins and fees applied both by Euronet and the bank
- Euronet has no control over any conversion by the bank, nor any fees charged by the bank let alone the settings of the account/card
Total charge falsely attributed to Euronet
The video references a charge of 175 EUR for a 1,000 EUR cash withdrawal, which is a combination of the fees applied by Euronet and CSOB. Euronet’s charge is 13.95% on ECB rate plus 3.95 EUR fixed fee. In addition to this being in line with competitive market rates, it is necessary to cover the high cost of the service (for example, the cost of euro banknotes, prime location rental, armored car service, fees charged by VISA and MasterCard, etc).
Any additional charge comes from the bank. We encourage the readers to review the price list on the bank’s official website. Any bank or financial institution that issues cards/accounts is required to set its pricing tariff in its agreements with its customers.
The option to cancel the transaction was clearly available
The video deliberately conceals another important element. There is an option to cancel the transaction on the FX Offer screen. This part of the screen is purposedly blurred from the video. Furthermore, as at every Euronet ATM and during any transaction, there is the option to cancel the transaction at any time during the flow using the dedicated button on the ATM keypad, which is in fact a standard ATM manufacturer feature globally (and in use by most, if not all, ATM deployers). The cardholder had full control and could have decided not to proceed with the transaction at any point before finalization.
The impartiality of the Honest Guide channel
The objective of informing the public about charges of a particular service such as ATM withdrawals is useful and of great value. However, it assumes that all elements of the process are clearly explained and thoroughly presented by someone who wants to provide objective information to the audience. In this case, the video fails to mention charges imposed by the bank.
Key questions arise that challenge the impartiality of the Honest Guide channel in this video and more generally, in relation to his Euronet-themed videos:
- Why does he not mention the charge by CSOB imposed for the particular transaction when converting the CZK amount to EUR. Is it true that this is in the range of 31 EUR?
- Why are other banks and independent ATM operators not mentioned in his videos? Is he aware that other banks and independent ATM operators in Czechia provide the DCC (currency conversion) service?
- Is he aware that based on publicly available information the DCC fees imposed by other banks and independent ATM operators in Czechia range from 12% to 19% for the conversion fee? Is he aware that CSOB charges 14.79% fee for DCC, as indicated in the bank’s website?
- Does Honest Guide have a commercial agreement with any bank operating in Czech for promoting bank services?
We encourage the Honest Guide to examine the pricing practices of other ATM operators in Czechia, including banks, to present a more comprehensive view of how the market operates. What he will find is that our pricing is consistent with market practices and in fact lower than the fees charged by many ATM operators on the market.
In summary
Another video with inaccurate and misleading statements by a channel that claims to provide objective and impartial information to his viewers.
Euronet is committed to providing cash availability 24/7 across the country in a transparent way. Euronet is the only ATM multi-currency dispensing services provider in Czechia. This is a complex and costly service, requiring strict compliance with laws in Europe, Czechia and the rules/regulations of card schemes.
It costs a lot to run an ATM, fill it with cash and keep it running. It is a convenience for the public; and the public does NOT have to use it. It is their choice. Anyone choosing to use a Euronet ATM is fully informed of the offerings on the screens. They can search out their own bank ATMs but may also come to ours for convenience. Convenience in any example is provided with a certain cost.
We respect that fees can be an important consideration, and users of our ATMs and those of other operators are free to choose which combination of price and convenience is best for them.
