ACCC proposes no-charge ATM for cardholders
The ACCC has proposed authorising an agreement between members of an ATM sub-network not to charge each other’s cardholders a fee for transactions at ATMs owned by members.
The reforms allow sub-networks to operate where financial institutions continue to charge each other for their cardholders’ transactions, rather than charging the cardholder directly.
The sub-network, branded ‘Feesmart’ means that instead of charging a cardholder a direct fee, Feesmart members will continue to charge each other for ATM transactions. The network in question will then independently decide whether to pass the fee on to its cardholders.
The proposed changes are in direct response to new ATM fee reforms introduced by the Reserve Bank of Australia on March 3, meaning customers can be charged directly by ATM operators for withdrawals of another financial institution, with the fees displayed on the screen.
The changes will allow small institutions to remain competitive within the market, along with protecting customers from being charged excessive ATM fees, says ACCC chairman, Graeme Samuel.
“The ACCC considers the proposed arrangement will be pro-competitive, helping to ensure that smaller financial institutions are not at a competitive disadvantage to the big banks as a result of reforms to the ATM system.”
The ACCC is seeking submissions from interested parties in relation to the draft, and parties wishing to be involved, should visit the ACCC website for further information. (www.accc.gov.au)
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Thank goodness, some common sense. The UK has had the same initiative (Link) for years. It started with just the Building Societies using it to remain competitive against banks with larger ATM coverage, but soon the banks joined too, to the benefit of the consumer.
Now UK banking customers are hard pressed to find an ATM that will charge them – only independent ones in petrol stations and places charge.
UK customers rarely pay a monthly fee on their accounts either. The fees charged for banking in Australia are massive in comparison.
This sector is ripe for a shake up in favour of the consumer.