New ATM fees to be applied to some Aussie users

Under the proposed rules, ATM owners will be able to charge cardholders a direct fee for using their machines if they display the charge before the withdrawal goes ahead.

 

The Consumer Action Law Centre says better measures are needed to protect customers in rural and remote areas, where banks and ATM owners are not subject to effective competition.

 

In a submission to the RBA, Consumer Action has urged the central bank to cap fees in the bush, saying "direct charges will probably be significantly higher at ATMs in regional areas than metropolitan areas." It also argues that banks and credit unions should no longer be allowed to charge customers for using another institution's machine.

Under the new regime due to start on March 3, the RBA will abolish the interchange fees banks charge each other when customers use their ATMs.

Currently, banks charge each other about $1 a transaction. The fee is usually passed on to customers with a substantial mark-up and not disclosed until it appears on a bank statement.

Even though banks will no longer pay the interchange fee, nothing will prevent them from charging their customers for the service.