Rural ATM users may be hit with higher fees by banks
Tuesday February 10, 2009
The Consumer Action Law Centre has entered a submission to the Reserve Bank of Australia asking it to attached a cap to fees banks or credit unions can charge when their customer use another institutions ATM.
The report stated that customers in rural areas need even greater protection as there is far less competition in those areas leaving customer more at the mercy of any fees attached by banks and ATM owners. It went on to request that banks and credit unions should eradicate charging customer for use of another machine entirely as the new rules set out by the Reserve Bank of Australia have eliminated any costs on behalf of the banks.
Under the new rules to take effect March 3rd onward, the Reserve Bank has cut any interchange fees banks charge each other whenever a customer uses any ATMs not of their own banks.
Presently, banks charge each other approximately $1 for transactions fees with this passed onto customers at a higher rate. The new rules state that this process between banks will be abolished, yet there is no mention of customer fees being cut. In fact, ATM owners will be allowed to charge cardholders direct fees when using their ATMs as long as the fee is displayed before any withdrawals are completed.
The National Australia Bank has already told its customers that they will be attaching an additional 50 cents for any withdrawals made on another banks or credit unions ATM.
