Opinion of the European Central Bank of 31 March 2025 on eliminating or reducing charges imposed by payment service providers (CON/2025/8)

OPINION OF THE EUROPEAN CENTRAL BANK of 31 March 2025 on eliminating or reducing charges imposed by payment service providers (CON/2025/8) Introduction and legal basis

On 20 December 2024 the Greek Parliament adopted Law 5167/2024 on the restructuring of the railway sector, the enhancement of regulatory bodies for transportation and other provisions (hereinafter the ‘Law’). The Law includes provisions eliminating or reducing certain charges and fees that may be imposed by payment service providers (PSPs), including credit institutions supervised by the European Central Bank (ECB) and the Bank of Greece, as well as addressing certain other matters. The ECB has not been consulted by the Greek authorities on the Law. The ECB has decided to deliver an own initiative opinion on the Law. The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union and Article 2(1), second, third, fifth and sixth indents, of Council Decision 98/415/EC , as the Law relates to (1) means of payment, (2) the Bank of Greece, (3) payment and settlement systems, (4) rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets, and (5) the tasks conferred upon the ECB pursuant to Article 127(6) of the Treaty concerning the prudential supervision of credit institutions. In accordance with Article 17.5, first sentence, of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

1. Purpose of the law

1.1 The main elements of the Law which are of relevance to the ECB are as follows. 1.2 The Law eliminates or reduces the charges imposed by PSPs for a wide range of day-to-day payment transactions conducted by natural persons, entrepreneurs, sole proprietorships and freelancers. More specifically, the Law introduces: (1) free of charge payments orders, provided that they are carried out via digital payment networks (web/mobile/internet banking) and free of charge standing orders, to pay certain bills and debts ; (2) free of charge withdrawal of cash through an automated teller machine (ATM) operated by a credit institution other than the one at which the account is maintained, in municipalities where there is an ATM of only one credit institution ; (3) free

of charge inquiries relating to the balance on an account, card or loan or relating to account movements through an ATM operated by a credit institution other than the one at which the account is maintained ; (4) free of charge charging and discharging of prepaid cards of up to EUR 100 per day, provided that they are carried out via digital payment networks (web/mobile/internet banking) and free of charge standing orders carried out via prepaid cards ; (5) reduced charges in respect of credit transfers of up to EUR 5 000 per day ; and (6) reduced charges in respect of transactions of up to EUR 20 conducted with micro-merchants via debit, credit and prepaid cards . 1.3 The Law broadens the types of loans that may be provided by credit provision companies supervised by the Bank of Greece so as to be the same as those provided by credit institutions, to enhance competition and offer more choice to businesses and households . 1.4 The Law increases by 100 % the real estate property tax imposed on apartments and houses owned by credit institutions and servicers as of the tax year 2026, to encourage the disposal of idle assets .

2. General observation

This opinion is limited to specific observations concerning the impact of the Law on (1) free of charge withdrawals of cash at certain ATMs and (2) the stability of financial institutions and the prudential supervision of credit institutions. This opinion does not address issues that fall outside the ECB’s fields of competence, including, in particular, issues concerning consumer protection or competition issues outside the ECB’s fields of competence in respect of means of payment, financial stability and the prudential supervision of credit institutions.

3. Free of charge withdrawals of cash at certain ATMs

3.1 The ECB understands that the introduction of free of charge ATM cash withdrawals concerns municipalities where only one credit institution operates one or more ATMs and applies for customers that maintain their payment accounts at other credit institutions. The ECB understands that it is the standard practice of Greek credit institutions not to charge their own clients for the withdrawal of cash with debit cards through ATMs operated by them. Therefore, clients have free of charge access to cash with their debit cards through ATMs in all areas where there are ATMs operated by the credit institution at which their account is maintained. Free of charge access to cash by a credit institution’s clients also applies as regards the withdrawal of cash from the respective credit institution’s ATMs with credit cards . The Law therefore effectively restricts credit institutions’ ability to impose charges for ATM cash withdrawals in municipalities where clients do not have access to an ATM operated by

the credit institution at which they maintain their account and where only one credit institution operates one or more ATMs. 3.2 The ECB welcomes this measure, which helps to preserve the effectiveness of the legal tender status of euro banknotes The ECB considers it important that all Member States put in place appropriate measures to ensure that credit institutions and branches operating within their territories provide 13 14 adequate access to cash services . This is crucial to facilitate the continued use of cash . Sufficient and effective access to cash is necessary to preserve the effectiveness of the legal tender status of cash. If citizens do not have easy access to cash, they will not be able to use it as a means of payment and store of value . The prohibition on credit institutions charging for ATM cash withdrawals as provided for by the Law is an effective measure to help ensure sufficient and effective access to cash throughout Greece. It helps ensure that all citizens in all municipalities may withdraw cash free of charge at ATMs in a convenient manner. 3.3 In this context, it is recalled that on 28 June 2023 the Commission published a proposal for a Regulation of the European Parliament and of the Council on the legal tender of euro banknotes and coins (hereinafter ‘the proposed regulation on the legal tender of euro cash’), which includes an obligation for Member States to ensure sufficient and effective access to cash throughout their territories. The proposed regulation on the legal tender of euro cash provides that, following its adoption, the Commission will adopt implementing acts on a set of common indicators of general application in the euro area, which would allow Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territories, in all their different regions, including urban and non-urban areas. It is envisaged that the ECB will be consulted by the Commission on the preparation of such implementing acts . Following adoption by the Commission of the implementing acts on the common indicators, Member States would need to monitor the level of access to cash throughout their territories based on the common indicators. If in the light of their assessment access to cash is deemed insufficient and/or ineffective, Member States would be obliged to take remedial measures. In this context, national legislation concerning access to cash would need to be reviewed and, if necessary, adjusted accordingly.

4. The stability of the financial system and prudential supervision of credit institutions

4.1 According to its explanatory memorandum , the Law lifts the limitations applicable to the granting of loans by credit provision companies with a view to fostering competition in the financial system,

improving the quality of services and promoting access to credit. In this context, the ECB understands that credit provision companies are supervised by the Bank of Greece and are accordingly subject to the macroprudential measures set out in Regulation (EU) 575/2013 of the European Parliament 19 20 and of the Council and in Directive 2013/36/EU of the European Parliament and of the Council , as implemented by the Bank of Greece, aimed at reducing the build-up of systemic risks and strengthening the resilience of the financial system. In view of the expansion of the types of loans that may be granted by credit provision companies so as to be the same as those granted by credit institutions, the ECB welcomes the fact that such companies will be subject to macroprudential borrower-based measures aimed at preventing or mitigating systemic risks stemming from residential real estate lending. 4.2 As regards the Law’s measures reducing or eliminating charges imposed by PSPs and concerning real estate taxes applicable to credit institutions and servicers, the ECB considers that the impact of these measures on the stability of the Greek financial system and on the prudential supervision of Greek credit institutions is broadly neutral.

This opinion will be published on EUR-Lex.

Done at Frankfurt am Main, 31 March 2025.

[signed]

The President of the ECB

Christine LAGARDE