ATM Fee reforms

[Mal]

There's quite a bit of info about this in the http://www.frequentflyer.com.au/com...best-local-credit-card-backpackers-15979.html thread, but thought this should get it's own thread.

In summary, you need to read the RBA's information about how Direct Fees work:
RBA: ATM Fee Reforms

The change most immediately evident to the public will be the introduction of ‘direct charging’ at ATMs. In general, when a cardholder makes a withdrawal or a balance enquiry at an ATM not owned by their financial institution (a ‘foreign ATM’), the owner of that ATM will now charge the cardholder a fee. The fee will be clearly displayed on the ATM screen prior to the transaction being completed and the cardholder will have the opportunity to cancel the transaction if he or she does not wish to pay the fee or believes that an ATM charging a lower fee may be situated nearby.

The current fee for 'disloyalty' appears to be around $2, although some pubs/clubs/establishments of ill repute are installing ATM's that adjust the charge based on the time of transaction (ie people who withdraw funds after midnight might be charged a 'drunk' levy).

A site has been created called ATMFeeTracker (ATM Fee Table ) which tracks the various charges from banks.

Note that it doesn't indicate the various inter-bank networks that exist where free transactions can be made.

(Note I have no connection to ATMFeeTracker, and can't verify the accuracy of it's information, but some simple checks have proven it to be correct - and people can get changes made to their tables if they are incorrect).

 

[RB]

Seems to be a lot of fuss when it can be mostly avoided by a bit of planning. Media seem to believe they get a lot of mileage out of it.

 

[oz_mark]

I also think there has been a bit of an excessive focus on the banks, to the exclusion of what the ATM owners have been doing (which in some cases are the same people), but the real winners are the owners. Where in the past they may get some of the fee that the consumer paid as a foeriegn fee, (which of the $2.00 fee about $1.00 went to the owner), now the owner takes the lot. So, in fact, their take of a transaction has doubled overnight.

 

[codash1099]

The changes have a great effect when applied to those cards which did not charge a fee when used at "foreign" ATM's. Two such cards are the Wizard Clear Advantage Mastercard and NAB's Gold account everyday transaction card.

Both of these could incur a fee overseas but did not in Australia. That advantage has now gone.

 

[StevePER]

I'm sure this will help consumers as much as the credit card reforms did.

 

[Alanslegal]

Both of these could incur a fee overseas but did not in Australia. That advantage has now gone.

It was only a small advantage locally because most would withdraw from their normal savings account rather than a Wizard CC.

 

[yo yo ma]

Seems to be a lot of fuss when it can be mostly avoided by a bit of planning. Media seem to believe they get a lot of mileage out of it.

Too true... this is a beat-up about a minor issue. Plan your spending and you will avoid fees.

 

[JohnK]

I have found the cashcard ATMs installed in most clubs and pubs do not charge an ATM fee for Citibank Readycredit card. If the club/owner of ATM decides to charge an ATM fee then it is the clubs loss not mine as I do not withdraw any money and more than likely go home. I do not believe in ATM fees, not even 20c, and refuse to pay them. It is the principle not the amount.

The changes have a great effect when applied to those cards which did not charge a fee when used at "foreign" ATM's. Two such cards are the Wizard Clear Advantage Mastercard and NAB's Gold account everyday transaction card.

Both of these could incur a fee overseas but did not in Australia. That advantage has now gone.

Don't forget that you can use the Wizard card at a Westpac ATM and pay no ATM fee. A little bit of an inconvenience but I have already worked out where the Westpac ATMs are located in the places I frequent the most.

 

[SeaWolf]

I think the point of the current upset about this is being missed. Previously the foreign ATM owners charged your home bank a fee, which they immediately passed on to the consumer at a fixed rate (say $2) which was probably based on an average of what foreign ATMs were charging them, plus a healthy profit margin. The intention of the reforms was to make sure that consumers were seeing on the screen what they were going to be hit for rather than getting silently charged a fee and to encourage competition among ATM providers. However, what has happened is that most consumers are now getting hit twice instead. They get charged the displayed fee by the foreign ATM, plus a silent fee (say 50c) by their home bank for using a foreign ATM. Obviously this isn't really what the Reserve had in mind when it made this attempt at greater transperancy. It's also well out of proportion to the cost that the home bank is incurring, since you've already paid the foreign ATM owner for them.

Accounts such as NAB Gold which previously offered no fee for using a foreign ATM are now washing their hands of this and saying, "It's not us charging the fee". Bankwest also offers an account that absorbs foreign ATM fees and they've got the other way and are continuing to do so (you just accept the displayed fee and Bankwest pays it).

NB: When I say 'foreign ATM' I mean an ATM located within Australia but operated by someone other than your account provider. An ATM located outside of Aus is an 'overseas ATM' and a whole other kettle of fish...

 

[Warks]

I just had lunch at the local pub meeting a client and had to pay my first fee ($2) as I had nix on me. I also have principles that don't allow me to pay fees, however, due to my poor planning, I had to swallow it or ask my client to buy lunch!

Banking with Suncorp in NSW means that ATMs are few and far between. It's going to require some planning all right. Or use EFTPOS I guess.

 

[JohnK]

I have never been charged an ATM fee or cash advance fee by Citibank or Wizard regardless of which ATM I used.

Since these new reforms are in place I will make sure that I never pay the ATM fee. Ever....

 

[medhead]

Accounts such as NAB Gold which previously offered no fee for using a foreign ATM are now washing their hands of this and saying, "It's not us charging the fee". Bankwest also offers an account that absorbs foreign ATM fees and they've got the other way and are continuing to do so (you just accept the displayed fee and Bankwest pays it).

however, I think reading something from NAB that indicated they were going to reduce the Gold account monthly fee as a result of these changes. So it may not be such an issue for NAB Gold account people.

However, for me on a choice package these changes are are total inconvience. I pay a big annual fee and for that I got completely free ATM usage including overseas. The system was completely transparent, I knew my fee, no matter what ATM I used. Now, I have to go out of my way to find a NAB ATM or face an unknown fee everytime I go to another ATM. It is a complete joke.

As for adding transparency, I think its a falsehood to consider the fee charged by the home bank as a silent fee, it is well known and listed in the bank fees schedule. Big deal that someone knows that the $2 fee is actually 50 cents to the home bank and $1.50 to the other bank. Someone stupid enough to pay $2 before is still going to pay the fee now. All it does is disadvantage people who have taken up one of the various options to avoid these fees in the first place.

The RBA needs to be dragged into the real world.

 

[serfty]

This does not really concern me at all. Fees were generally charged for using the ATM of a 'oz foreign' bank, if not immediately, certainly at the end of the month. With this there less chance of such hidden charges.

 

[medhead]

This does not really concern me at all. Fees were generally charged for using the ATM of a 'oz foreign' bank, if not immediately, certainly at the end of the month. With this there less chance of such hidden charges.

It is just false to say the old system had hidden charges. The charges were published and well known, at least with my bank. The only thing that wasn't known was who got what money. Knowing who collects what money now is not going to reduce the charge and in fact it is going to cost some of us a hell of a lot more. I rather pay less and not know who gets paid what when I use an ATM.

 

[Mal]

NAB have dropped their 'foreign' ATM fee surcharge now due to customer feedback. So no Australian bank that I'm aware of charges a fee for using your card in another credit network's ATM.

 

[JohnK]

So no Australian bank that I'm aware of charges a fee for using your card in another credit network's ATM.

Are you referring to debit cards only?

As far as credit cards go there are some hefty fees around for cash advances.

 

[Mal]

Are you referring to debit cards only?

As far as credit cards go there are some hefty fees around for cash advances.

Yeah, you are right... eg Commbank does charge slightly more for a cash advance at a another bank's ATM that their own still..

 

[Diesellife]

I wonder if we have enough complaints lodged...will NAB reverse their decision on Gold Banking and adapt the Bank West's method....(No charge ever)....

 

[Chicken]

Banking with Suncorp in NSW means that ATMs are few and far between. It's going to require some planning all right. Or use EFTPOS I guess.

Same here. I am with Suncorp Metway mainly for the fact that I used to pay $5 and I can use any ATM I want.

Now, I pay $5 and I get nothing. There is next to no Suncorp Metway ATM unless you are in the CBD. Suncorp Metway is now completely useless outside QLD.

So now, I keep $55 in my normally empty HSBC ATM card, just so I can use Westpac ATM to draw out $50 if I need to.

Side note, Suncorp had started to do rebates for some ATM at some locations, but there is no consistancy, mostly RediTellers, some NAB, some St George, some Westpac, so if you are walking down the street, you can't tell if an ATM is going be free or not, unless you do a Google search in advance.

 

[Diesellife]

I've talked to NAB resolution team and they advised me if there are enough gold banking customers lodge complaint regarding the ATM charge, they may look into doing what Bank West is doing - Reimburse the ATM charge....

So for all the gold banking customers, please call this number 1800152015 (NAB resolution) and select 2 and lodge a complaint....

It only cost you 2-3mins and hopefully will bring a better outcome for all the NAB gold banking customers.