SYDNEY -- Australian consumers make almost half of all their ATM transactions on "foreign" machines, according to figures from the Reserve Bank of Australia.
According to a report in the Sydney Morning Herald, which cited Reserve Bank figures, only 53.2 per cent of all ATM transactions were made at machines owned by the cardholders' bank machine in 2002.
Bank customers made 320 million transactions on foreign ATMs in 2002 and 364 million at their own ATMs.
Transaction fees for using a foreign machine are typically $1.40 or more, up from an average of 40 cents in 1995.
The proportion of "on-us" transactions -- which on average cost 60 cents -- fell during the past four years, said Michael Ebstein, an industry expert with MWE Consulting.
Ebstein told the Morning Herald that the rise of independently owned and operated ATMs, based in retail outlets such as convenience stores, service stations, hotels and shops, has contributed to the decline in cardholders using their own bank's machines.
"Given the fees applicable at foreign ATMs, I thought people would work harder to use their own bank's ATM," Ebstein said. "People either are not aware they are paying the fee or they reckon it's a fair price to pay for using a device that is close by."
Although banks do not divulge how much they earn from ATM transactions, the figures suggest consumers are paying more than $500 million in fees each year to use foreign ATMs. The latest Reserve Bank figures showed there were 16,400 ATMs in Australia in June of 2002.
Catherine Wolthuizen, finance policy officer of the Australian Consumers Association, said fees for using foreign ATMs were far too high. "The fees people are charged for using foreign ATMs are well in excess of providing the service," she said.
The Reserve Bank is overseeing reforms to improve the transparency of ATM fees disclosure. It is proposed that fees appear on ATM screens informing users of what they are being charged. However, industry sources say any change is at least 18 months away.
