AIB (Allied Irish Banks Plc) are now promoting “eStatements” for their credit card holders. An eStatement is a PDF that has the same layout and information as a traditional paper statement
Now, as the title of this article suggests (Yay or nay?) I’m not sure if I would prefer an eStatement instead of a traditional paper statement.
Lets consider who wins and loses here
The bank saves money on envelopes (1c), paper(5c), printing(1c), postage (41c for a ceadunas autosort bulk mailer) that is 48c per statement, or EUR 5.76 per annum.
Now, what about the cardholder, it is likely he will just print the PDF statements himself which will cost him on paper (5c), printing (2c for a home laser page)
So the bank saves money, and the cardholder loses money, eStatements appear to be a bad deal. But it gets worse. If a cardholder wishes to take his business to another credit card issuer, for example MBNA, he will need to furnish the new company with a sample of his recent credit card statements (to confirm to the new company that his account limit and debt is as disclosed). As we all know MBNA will need “originals only” of such statements. They cannot consider an eStatement printed on a cardholders personal computer to be original, so the cardholder must request what is now a “duplicate” statement from AIB which naturally attracts a fee. Even if a person has an unquestionaly large “professional” income and is thus not asked for past statements he will still be asked for a Giro if he needs the new company to perform a balance transfer. And the Giro is an interesting object, without it a cardholder can only pay his bill online, or by direct debit. He cannot pay it in a bank branch, or by post using a cheque. You cannot photocopy a Giro because the black ink is actually MICR ink, which is magnetic, although you could to splash out on a MICR catridge for your laser printer, but if you have that much money then you shouldn’t be reading this article, you should be in Monaco having a champagne breakfast on a balcony overlooking the harbour watching the many beautiful sports cars and yachts.
But to get back to the point these eStatements are a bad deal.
AIB make alot of money from charging for so called “duplicate statements”. I recall how in 2005 they had a practice of sending me multiple statements for different accounts in one envelope, my address was only printed on the outermost sheet to match the plastic window of the envelope. So the rest of the statements were useless for use as “proof of address” documentation within the meaning of the money laundering regulations, which apply when a person wishes to open a bank account.
But can we blame AIB? They are a business - viz a for-profit entity - and indeed they are a Public Limited Company - so their profitability is closely watched daily by stockholders and potential stockholders. The message is clear if you bank offers you a choice of doing things a new way first consider if you will benefit or not.
I will not be electing to receive eStatements, and I suspect the only cardholders who will are those who are well in the red, and don’t want to risk their significant others opening the heavy paper statement that will land on the hall floor every month.
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