ATM Fee reforms

[oz_mark]

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....

Which account does Bankwest do this for?

 

[Chicken]

Which account does Bankwest do this for?

Everyone, as long as you have $2000 or more deposit each month.

Bankwest Zero Transaction Account

 

[codash1099]

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.

Big deal! NAB have dropped the monthly account fee from $12 to $10. For anyone already avoiding the fee by depositing sufficient funds each month this represents no actual saving. For all others, it's a slap in the face.

 

[SeaWolf]

http://www.bankwest.com.au/library/...8.pdf&str_title=Bankwest Customer Q&As v2.pdf

Q. I have a Zero, FreeB or AgriOne account, will I have to pay a Direct Charge?
A. No. As per the PDS, you will not incur any ATM fees when using another bank/independent operator’s ATM.
Q. How will Direct Charging affect Zero, FreeB or Agrione accounts?
A. You will need to accept the Direct Charge which will be displayed on the ATM screen at the time of transaction. Once you "accept" the Direct Charge, the transaction will be processed and the Direct Charge will be paid immediately by Bankwest.
The Direct Charge amount will not be included in your available balance calculation for a cash withdrawal or for a balance enquiry.
Q. How will I know I have not been charged a Direct Charge on my Zero, FreeB or AgriOne account?
A. The Direct Charge will not be debited from your account but will be displayed on your statement with a line showing “ATM Operator Fee of $x.xx Paid by B/West”.

 

[medhead]

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)....

The short answer is No NAB is not following the Bankwest path. According to the letter that I got from NAB they have reduced their gold banking monthly fee to $10. It was previously $12. So NAB have determined that the monthly cost to them in fees to the owners of other ATMs was $2 for gold bankers and have reduced your fee according.

Gee, how transparent, thanks RBA

Now to get the Choice package fee reduction.

 

[medhead]

Big deal! NAB have dropped the monthly account fee from $12 to $10. For anyone already avoiding the fee by depositing sufficient funds each month this represents no actual saving. For all others, it's a slap in the face.

Well, its not NAB fault, blame the RBA. Besides I never said anything about it being good or bad. But think about the averages, on average how much do you think the other ATMs used by gold customers used to cost NAB. Out of a $12 fee, $2 seems about right to me.

Anyway, think yourself lucky your not a choice package customer paying $375 per year (not to mention $24000+ in interest) in fees and getting NO reduction because of the ATM changes.

edit: not mention NABs new %*^& #$%^ @##$@ beeping beep beep voice response system. I'll be whinging about my fee and if I get nothing then I start removing loan accounts from them one by one.

 

[Diesellife]

The short answer is No NAB is not following the Bankwest path. According to the letter that I got from NAB they have reduced their gold banking monthly fee to $10. It was previously $12. So NAB have determined that the monthly cost to them in fees to the owners of other ATMs was $2 for gold bankers and have reduced your fee according.

Gee, how transparent, thanks RBA

Now to get the Choice package fee reduction.

In fact, my friend (Who works for NAB in customer resulotion) told me NAB would consider to follow Bankwest's path (Of course, if enough customers raised the issue)...

After all, it is not so difficult for people to sign up for Bankwest's account solely for withdrawal purposes. (I remember the only reason I joined NAB gold back then was becoz of the fee free ATM) Whether people would use NAB gold & Bankwest two accounts concurrently or Bankwest account alone is another matter. Therefore, I would assume NAB would consider to protect their consumer market share and bring Gold banking back to their original standard. Also, I believe NAB took away the loyalty fees for normal banking account due to large amount of complaints.

In regards to the $2 reduction, this policy was introduced in Janurary 2009 and could deemed to be outdated (Which did not include the Bankwest's zero fee strategy). And to be honest, how often do the gold banking users get charge with the $12 anyway? Therefore, there is really so little to no incentive for the $2 deduction.

All in all, I'm only here to advise that there may be a chance for NAB to revise their action. No matter how slim the chance is, we should still grab this opportunity before it's too late. All it cost is a telephone call, it wouldn't hurt so much, would it?

 

[oz_mark]

I would also consider the problem if too many people conduct transactions at foregin ATM's and Bankwest are paying out a fortune in fees then they may cap them.

Years ago, I had a Westpac (started off as Challenge), account that allowed unlimited fee free transactions at any ATM in Australia. At one point a letter was sent out to people advising that even though it was free they should consider using Westpac/Challenge ATM's. Obviously that didn't work, and eventually the fee free status was removed.

 

[Chicken]

I would also consider the problem if too many people conduct transactions at foregin ATM's and Bankwest are paying out a fortune in fees then they may cap them.

That's OK, as long as they give you a reasonable quota.

Just like Elders Rural Bank, they charge $6 for a personal transaction account, but they give you $6 of rebate back.

Years ago, I had a Westpac (started off as Challenge), account that allowed unlimited fee free transactions at any ATM in Australia. At one point a letter was sent out to people advising that even though it was free they should consider using Westpac/Challenge ATM's. Obviously that didn't work, and eventually the fee free status was removed.

1: There are a lot more WBC ATM around

2: BankWest has next to no ATM.

It is always like that, a few people ruin it for everyone else.

 

[oz_mark]

2: BankWest has next to no ATM.

But their owner (Commbank) has plenty.

 

[SeaWolf]

2: BankWest has next to no ATM.

That's also not true in WA where the vast majority of their customers are. In WA they have more branches and ATMs than any other bank.

 

[medhead]

All in all, I'm only here to advise that there may be a chance for NAB to revise their action. No matter how slim the chance is, we should still grab this opportunity before it's too late. All it cost is a telephone call, it wouldn't hurt so much, would it?

Don't worry, I'm calling them, but it probably won't help because the choice package is my concern not gold banking, as such.

Anyway, I still blame the RBA they have upset the apple cart in the name of transparency to supposedly help us poor consumers. But the changes are not going to help those idiots who pay the ATM fees (like my BIL) and are only going to hurt customers who have their cough sorted out.

 

[Mal]

The Commsec Debit Mastercard has a weird twist on the charging method:

* Cash withdrawals and balance enquiries at non-CBA ATMs in Australia will continue to attract the existing $2 fee as per the Schedule of Fees and Charges which can be viewed at www.commsec.com.au.
* You will not incur the additional Direct Charge fee by the non-CBA ATM owner.
* You will continue to enjoy fee-free ATM transactions at over 4,000 Commonwealth Bank (CBA) ATMs in Australia.

 

[kdser]

Just filled the Bankwest Zero account application form. Will mail it on Monday. Hope the no-ATM-fee benefit will at least stay for a while, my effort is not wasted.

 

[one9]

2: BankWest has next to no ATM.

Now that Commbank own Bankwest, all Bankwest customers can use Commbank ATM's as if they were Bankwest ATM's (ie. they are not considered foreign).

I recently changed my transaction account and considered between the two products:
1. Bankwest Hero Account - use CBA/Bankwest ATMs and receive reasonable interest (3%).
2. Bankwest Zero Account - use any banks ATMs for free but receive no interest.

I ended up getting the Hero account because personally I don't use ATMs much and when I do I can usually use a CBA one. So overall I think I will be better off with the interest.

 

[kdser]

Australian banks may pay ATM charges

http://www.news.com.au/business/money/story/0,28323,25258312-14327,00.html

THE big banks' policy on charging ATM fees may be about to change as customers flock to Australia's only bank account offering free access to every cash machine in the country.
NAB, Commonwealth Bank and Westpac say they will monitor Bankwest's "zero fee'' account and decide how best to react.

"It will be interesting to see how customers respond to that,'' NAB retail banking boss Lisa Gray said.

"We will continue to look at our products and see if weneed to modify them.''

The Bankwest account was launched last year, but since new rules governing ATM fees were introduced earlier this month - under which customers are typically charged $2 for using a rival bank's ATM - it has suddenly become a bargain.

The account is a stand-out because, although other bank customers will be hit with a fee averaging $2 when they use a rival bank's ATM, Bankwest will rebate the fee to its customers.

"You have to press the button to `accept' the charge from the ATM owner when prompted on the screen,'' a Bankwest spokesman said.
"But you won't have to pay it. We will cover whatever costs you incur.''

One executive of a rival bank described the Bankwest account as "too good to be true'' - until hesaw the customers' list of terms and conditions.

And Christopher Zinn, of the consumer group Choice, said it was a terrific deal for consumers.

"It's a great point of difference. Bankwest has a tiny branch network, so it needs to do something to attract its customers,'' MrZinn said.

"If you don't need a branch network and you use ATMs quite regularly, you could save $100 a year or more - and that's an excellent inducement.''

Bankwest said it was delighted with the way the account was running but admitted it would have to monitor costs closely.

"If some rogue ATM operators start charging $10 or $20 for a transaction, that's going to cause us problems,'' said Paul Vivian, Bankwest head of retail deposits.

The Federal Government is known to be concerned about bank charges.

Canberra will likely welcome any increase in competition that helps keep them down.

Treasurer Wayne Swan and Prime Minister Kevin Rudd met with the banks earlier this month to discuss the charges.

There is likely to be significant government pressure to cut fees, especially as banks have hinted they will not pass on any future interest-rate cuts in full.

NAB boss Cameron Clyne said last week he wanted to address the bank's charges.

"Many people think the banks can be coughs and the challenge I am setting for NAB is to lift our game,'' Mr Clyne said.

 

[Mal]

Re: Australian banks may pay ATM charges

Australian banks may pay ATM charges | Money | News.com.au

THE big banks' policy on charging ATM fees may be about to change as customers flock to Australia's only bank account offering free access to every cash machine in the country.
NAB, Commonwealth Bank and Westpac say they will monitor Bankwest's "zero fee'' account and decide how best to react.

I presume now that the "leeches" are getting onboard - or will get onboard due to publicity, that this will be short lived. The minimum $2K/Month deposits will earn the bank a smidgen of interest, but I can't see it being profitable for them if they're paying ATM operators $2 a pop for you to transact.

 

[oz_mark]

Re: Australian banks may pay ATM charges

I presume now that the "leeches" are getting onboard - or will get onboard due to publicity, that this will be short lived. The minimum $2K/Month deposits will earn the bank a smidgen of interest, but I can't see it being profitable for them if they're paying ATM operators $2 a pop for you to transact.

I suspect that they may cap the amount they will cover down the track.

 

[Diesellife]

I suppose its the game of advantage vs disadvantage...

- By rebating the ATM cost thus increase current market share of bankwest in theory.

- Oridinary (By Stats) consumer do not use ATM everyday and generally people do stay in an appropriate limit.

- Surely casino ATM users will be stealing from the profit (If any) of the current Bankwest ATM scheme.

- The deposit amount will be generally larger than to minimum deposit of $2000 a month, thus more interest benefit for them.

Conclusion: If bankwest continue the current scheme unchange, big four may or may not react to the competition. If they do, I suggest the rebate may become an industrial standard?! Otherwise Bankwest will continue to gain market advantage?!

In any case, it looks like a win win situation for consumers...

 

[beardoc]

The Bankwest "rebate foreign ATM fees" structure is very common in smaller US banks - I'll be keen for it to catch on here.