More than half-a-billion dollars is paid annually in ATM fees, five years after Reserve Bank reforms designed to reduce the fee amount paid. Under the Reserve Bank of Australia’s 2009 changes, if a withdrawal fee is to be charged it has to be disclosed at the time of the withdrawal and customers are asked if they want to continue.
Fees are charged on cash withdrawals and balance checks at “foreign” ATMs; those not part of the consumer’s financial institution network or a network affiliated with their financial institution.
Research by comparison website Mozo finds eight of the country’s 14 ATM operators have increased their charges and estimates consumers are paying more than half-a-billion dollars in fees each year. The portion of transactions on foreign ATM has decreased since the reforms.
However, the maximum fee has increased from $2 to $2.50, said Mozo director Kirsty Lamont. The big banks typically charge $2 to foreign transactors using their ATM networks. However, about half of the ATMs in the country are independently owned and these typically charge $2.50. Some smaller and regional banks also charge $2.50.
Ms Lamont says that while the big banks have held their ATM withdrawal fees at $2 for several years, there is a risk they could follow the lead of the smaller ATM operators. She says $2.50 could become the standard ATM fee.
Other than using your financial institution’s ATM network or an affiliated network, fees can usually be avoided by withdrawing cash with an EFTPOS transaction; though some regional banks, mutual banks and credit unions may charge for EFTPOS transactions, Ms Lamont said.
To check an account balance at no charge, use either your own financial institution’s ATM, the internet or mobile phone banking.
