ATM fees range up to $4

Owners of automatic teller machines are reaping $120 million less, in aggregate, in annual fee revenue from customers from the use of ATMs, an analysis by the payments system department of the Reserve Bank of Australia has found. It is now more than one year since direct charging by ATM owners of ATM users replaced the earlier pricing model in which banks charged each other interchange fees and often passed on those fees to users.

The RBA review found that the most common ATM fee is $2, which applies at around 88 per cent of ATMs in Australia. Of the balance of the ATM fleet, most charge $1.50 (mainly on ATMs owned by either National Australia Bank or credit unions). Charges were up to $2.50 at a minority of ATMs owned by non-bank entities such as Cashcard and Customers Ltd, while a third independent, iCash Payments, charged $3 on some ATMs.

In a few venues, such as poker machine palaces, the fees are as high as $4. The RBA said as yet there is no “time of day” charging for use of ATMs. “Foreign” ATM withdrawals fell from around 44 per cent of all transactions before the introduction of direct charging to 38 per cent. Balance inquiries reduced by one third to one half over the year, with these also now subject to a direct charge. Consumers perhaps have not aware this service attracted a fee before disclosure of fees upfront.

Source: BankingDay