BMO eliminates debit transaction fees for transit rides in Canada

This could encourage other financial institutions to follow the same path

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BMO has announced that it would no longer charge customers debit transaction fees at any transit authority terminals across Canada, for both commercial and retail customers..

BMO has now eliminated transaction count limits on any transit authority terminals throughout the country. It’s worth noting that if customers exceed their free transaction limits (set by the bank), fees would still apply, but not for transit payments.

This modification comes as many transit payment systems across the country shift towards tap debit and credit card payments on buses and subways. “BMO is the first financial institution to offer both retail and commercial debit card holders unlimited transit authority transactions and help simplify their public transit experience,” said Gayle Ramsay, head of Everyday Banking, Segments & Customer Growth at BMO.

“In this economic environment, we are seeing that significantly fewer Canadians feel they are making real financial progress with particularly steep declines in city centres such as Toronto and Vancouver. This feature will help ease worries about transaction count limit fees and let customers focus on their financial goals and staying on budget.”

“We welcome BMO’s decision to make transit use easier and more convenient by making all debit transactions free of charge” said William Keliehor, chief commercial officer at Interac. “Millions of Canadians use Interac Debit for day-to-day purchases direct from their bank account and we are committed to expanding convenient debit payments at transit authorities across the country.”

Last month, Vancouver’s TransLink launched Interac debit tap payments for every bus and fare gate, system-wide. The latest BMO announcement could encourage other financial institutions to follow the same path, making the public transit experience easier and more convenient for Canadians.

Image credit: Metrolinx

Source: BMO Via: iPhone In Canada