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Aussie Senate to investigate 'infuriating' ATM fees

Members of Australia's Labor and Greens parties called for banks to justify the 'pure profit' they make by charging off-us fees.

June 30, 2015

ATM and credit card fees in Australia will face "intense scrutiny" from a Senate economics references committee according to an article by Banking Day. The committee will report its findings by Nov. 24.

Members of Australia's Labor and Greens parties called for the inquiry into fees, which a Daily Mail report called "infuriating."

Senators Sam Dastyari and Peter Whish-Wilson led the charge, giving three reasons why ATM fees — particularly foreign fees — should be scrapped:

• they are disproportionate to the service provided and are "pure profit" for banks;
• they are regressive — for the poor person taking out $40, a $2 fee represents a 5 percent "tax," but for the wealthy person withdrawing $400 it represents only 0.5 percent.
• they are often forced on rural accountholders who do not have a home bank ATM available.

Earlier this year, Australia's Bendigo and Adelaide Bank received a firestorm of criticism in the Australian press for charging its own customers to use its ATMs.