ATM fees to be overhauled - Aussie Stock Forums

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  1. #1

    Default ATM fees to be overhauled

    Customers may not have to pay as much for using auto teller machines (ATMs) that belong to banks other than their own under new rules that come into effect in October next year.

    Under a Reserve Bank initiative to reform Australia's ATM system, banks will not be allowed to charge each other when non-customers make withdrawals from their ATMs.

    Instead, a direct fee will be paid to the owner of the ATM, with all costs appearing on the screen and requiring approval from the customer.

    But the chief executive of the Australian Bankers Association, David Bell, says there is no guarantee the new system will save customers money.

    "I've got no idea as to what it means in terms of the level of fees," he said.

    "That's something for individual institutions and ATM deployers to work out. You have to remember that banks only own half of the ATMs in Australia."

    Mr Bell says the association's preference would have been to keep the current arrangement.

    "But we accept that the Reserve Bank wants to make these changes," he said.

    "We've been in discussions with them as have all other ATM providers."

    Mr Bell says the Reserve Bank now has a responsibility to educate customers about exactly what the reform will mean.

    "We think it's critical that before these changes are put in place the Reserve Bank, which is the initiator of these changes, should conduct a public education campaign to make sure people understand the implications of these changes," he said.

    All I can say is, about time!!! I spent a year working in the UK and you can go to any big 4 ATM and use it fee free. Sometimes, I sorta think that Oz is like 10 years behind the rest of the world!!!!

    Just my 2 cents

  2. #2

    Default Re: ATM fees to be overhauled



    I spent a year working in the UK and you can go to any big 4 ATM and use it fee free.

    we may just end up paying a different piper,

    see CUS ann below, dated 31/08/07:

    For immediate release
    31 August 2007
    Customers welcomes RBA ATM reforms

    Customers Limited, Australia’s largest ASX-listed owner of ATMs, today welcomed the Reserve Bank of Australia’s decision to reform the ATM system and looks forward to working closely with industry participants in implementing the RBA’s recommendations as soon as possible.

    Customers’ Executive Chairman, Greg Baker, said that the new ATM reforms when fully implemented would provide clear and transparent pricing to Australian consumers on their ATM transactions for the first time.

    “We fully endorse today’s announcement by the RBA. The decision will mean that for the first time users of ATMs will be able to have access to an enhanced service, offering greater convenience and transparency of direct charging/service fees and we believe this is a very positive move for Australian consumers and our retail customers.

    “Today’s announcement will be beneficial for both Customers Limited, our retail partners and for those that use our ATMs. We are well advanced in our plans to progressively introduce direct charging/service fees at our ATMs and look forward to completing the rollout during 2008” Mr Baker said.

    About Customers Limited (www.customers.com.au)

    Customers Limited is an Australian ATM and Electronic Payments Systems business that is listed on the Australian Stock Exchange (ASX code: CUS). In just two years Customers has become Australia’s largest ASX-listed owner of ATMs. Its strategy is to become a leading supplier of ATMs and electronic payments systems in Australia and Asia through market aggregation and organic growth.

    Customers is a joint venture partner with Bendigo Bank and MasterCard International in Strategic Payments Services (SPS), Australia’s newest payments processing business.

    Customers is a member of the ATM Industry Association.

  3. #3

    Default Re: ATM fees to be overhauled

    Quote Originally Posted by DB008 View Post
    All I can say is, about time!!! I spent a year working in the UK and you can go to any big 4 ATM and use it fee free. Sometimes, I sorta think that Oz is like 10 years behind the rest of the world!!!!
    Not sure about accounts with the big 4, but 10 years ago I had an account with Trust Bank (since taken over by Commonwealth) and could use any atm with any bank and most credit unions and pay zero fees.

  4. #4

    Default Re: ATM fees to be overhauled


    This could definitely work out worse for some; I can name several home loan lenders who absorb the costs of customers accessing their accounts through other banks' ATMs. If the customer is charged directly, then this isn't going to happen anymore so customers of these smaller lenders will suffer (especially lenders who don't have any ATMs in the states where they offer this service).

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