Banks New ATM Fees Take Affect Today

Tuesday March 3, 2009

Some ATM fees will rise as a result of the Reserve Bank's new rules that are commencing today, that are effectively eradicating banks interchanging fees when customers use opposition banks ATMs. The new rules state that ATM owners, of which approximately 60% of all ATMs are independently owned, may charge cardholders a direct fee when using their ATMs as long as any charges are displayed before withdrawals are completed.

As it stands now, the maximum cost to a bank to electronically process a transaction from another banks ATM is 10 cents while it costs 75 cents per ATM transaction.

Only the Commonwealth Bank and ANZ has stated that it will not be charging customers any new fees under the latest Reserve Bank rules with offers of free use of other ATMs although ANZ will still charge $2 to non-ANZ customers using their ATMs. Meanwhile all 115 credit unions and building societies have announced that they will no longer charge their $2 fees and offer free access to all ATMs.

The National Australia Bank will charge their customers to an additional 50 cent fee when using another banks or credit unions ATM while St George and Westpac will charge 25 cents.*

It is feared that the hardest hit by the new rules will be customers using independent ATMs where competition between ATMs is fairly non-existent such as inside pubs, rural areas or sporting/entertainment venues. These types of ATMs may effectively charge what they like, typically around the $2 mark, with banks unable to limit what any ATM owners can charge under new rules.

Currently, the only condition on such transactions and ATMs is that fees must be displayed before any withdrawals approvals so the customer is aware of the ATM fees.

* rates and conditions correct as at this date but subject to change at anytime

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