AIB says it is suspending the planned introduction of contactless fees.
The bank says they've made the decision due to the ongoing COVID-19 outbreak.
AIB had previously written to customers to inform them they would be introducing the fees, while maintenance and transaction fees would also be applied to accounts.
Customers have previously been able to avoid these fees by keeping a minimum balance of €2,500 in their account each quarter.
A spokesperson said this option "would be withdrawn" on May 30th 2020.
A charge of €4.50 per quarter would be applied on current accounts, while from the same date contactless transactions were due to cost 1 cent per tap.
In a short statement today, AIB said: "In the light of the current Covid-19 outbreak AIB is suspending the planned introduction of the contactless fee."
There have been a number of calls for banks to increase contactless limits and waive fees during the current crisis, as many businesses are asking customers to use tap payments wherever possible as a hygiene measure.
Labour TD Duncan Smith said: “As more businesses are moving away from cash payments during COVID-19, banks should now consider increasing the limit on contactless cards from €30 to €60.
“We are all trying to limit our person to person contact over the next few weeks, and where we can we should pay with card. For many who are stocking up on essentials, their bill may come to more than €30.
“The technology is there for those who are paying with their phones to spend more than €30 on contactless, so banks should be doing everything they can to transfer this technology over to those who don’t have access to Apple or Google Pay."