What is a dormancy fee and why should you consider it?

PR Manager

Jul 13, 2023
5 min

All banks and neobanks bear certain operating costs, which, in general, the client does not notice. This is perfectly normal. At Blackcatcard, in particular, we have designed our online banking in such a way that our users enjoy our products at very competitive prices, some of them even for free!

Some operational costs are managed by us, so that you don't have to think about them at all. However, even if a client has a financial product, but does not use it, this product will still have a cost, which is unsustainable for us in the long run. For these cases of inactivity there is, not only in our neobank, a dormancy fee. But what exactly is this?

Let's go to the basics

A dormancy fee is a method of maintaining an operation despite client inactivity. It is a charge for not using a product or service. In our case, after 6 consecutive months of inactivity, i.e. for not using your IBAN account, 15 Euros per month will be charged to keep this financial product available.

Of course, we aim to avoid any additional fees for our users. In fact, for our individual clients opening an IBAN account at Blackcatcard, receiving their main virtual and plastic card and using them to make all their payments is totally free, there is no maintenance fee. Many banks and neobanks may charge for these services even if the client is active and uses them regularly.

How to avoid the dormancy fee?

If a client gets close to the inactivity point for 6 months in a row, he will start receiving notifications from us, which will warn him about this dormancy fee. That is why it is important that you constantly check your email –make sure that our messages do not go to spam– if you have not used your Blackcatcard products for several months. It may even happen that you have changed your email or phone number, so make sure you always have your contact information up to date.

Of course the best option is to make use of your money, and thus, your account as well. You can send or receive money to other Blackcatcard accounts, free of charge, or other types of accounts. Remember that you have the possibility to make up to 5 SEPA transfers totally free per month, after the sixth one you will have to pay a very small commission of 0.2 Euros for each transfer regardless of the amount. On the other hand, you can make cash withdrawals, practically in most ATMs in the world. You can withdraw up to 200 Euros per month for free, from this amount you will pay a commission of 1% of the amount withdrawn. We are sure that it will be enough for you to keep with you the necessary cash for expenses that may come up at any time, isn't it?

You can also make purchases or service payments - monthly subscriptions, for example - with your payment cards at any online or retail store. In fact this option will be beneficial, because, thanks to the rewards program offered by our partner Baltic Technology Solutions OÜ, you can receive amazing cashbacks up to 5% for purchases on Google Play Market, 2% on Amazon or 0.1% for all purchases made with your Blackcatcard.

If you think about it, doing this does not generate any additional charge, you are actually just using your money, so you will have nothing to worry about, you should just enjoy your own funds and the financial products we have for you totally free if you use them actively. As we already mentioned, there are banks and neobanks that charge even when you use your account and cards. Fortunately, this is not our case.

If for some reason you have been inactive for this time and you start paying the dormancy fee, you can contact our support team to check what alternatives there are to resolve this issue.

If you follow our recommendations and keep your account active, believe us, you won't have to think about the dormancy fee. On our part, we will continue to take the best measures to offer you the best possible online banking at the most competitive prices, so that you do not have to bear additional and unnecessary costs.


What is the dormancy fee at Blackcatcard?

It is a charge applied to the client who does not use his IBAN account for 6 months in a row.

How much is the dormancy fee?

It is 15 Euros charged monthly after the sixth month of inactivity.

Can I avoid the dormancy fee?

Of course you can! You only have to use your account at least once a month. You can make money transfers, withdrawals or purchases with your payment cards. That will be more than enough.

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