Equity Bank Tanzania’s New Fee Structure Raises Concerns Among Customers

Equity Bank Tanzania has recently unveiled a revised tariff guide, introducing several new fees for its banking services. While the bank has cited reasons for these adjustments, customers are expressing growing apprehension about the potential financial impact and the lack of clarity surrounding the changes.

Here’s a breakdown of the new fees and their implications:

1. Online Declined Visa Card Transactions:
   • Fee: 2 USD per transaction (both local and international).
   • Explanation: Customers will now incur a flat fee for each declined Visa card transaction. This applies to transactions made within Tanzania as well as those conducted internationally. While declined transactions occur every day, introducing this fee has raised concerns about additional charges for unsuccessful transactions.
2. ATM Cash Withdrawals Outside Tanzania:
   • Fee: TZS 12,000 + 15% Markup of FX Rate.
   • Explanation: Customers who withdraw cash from ATMs outside Tanzania will face a fee of TZS 12,000 and a 15% markup of the foreign exchange rate. This fee structure aims to cover the costs associated with cross-border transactions. However, customers worry that this could significantly increase the expenses of accessing funds while traveling abroad.
3. International Point of Sale (POS) and E-commerce Transactions:
   • Fee: 15% Markup of FX Rate.
   • Explanation: For international point-of-sale transactions and e-commerce purchases, customers will be subject to a 15% markup of the foreign exchange rate. This markup could result in higher customer costs when purchasing from foreign merchants or conducting online transactions in foreign currencies.

While Equity Bank Tanzania has stated that these adjustments are necessary to ensure the bank’s financial stability and competitiveness, customers are seeking further clarity and transparency regarding the rationale behind these changes. Many are concerned about the potential financial strain these fees may impose, particularly on those relying heavily on electronic transactions and international banking services.