Best local credit card for backpackers?

[mushypeas]

But will all non-NAB transactions be fee free after the new regime comes in? While NAB may not charge a fee, the ATM owner will be quite free to do so, and I assume they will do so. I don't know there is much NAB can do to stop that.

The Bank will cover the charge of another institutions fee. According to nab's website:

In addition to branch and cheque access, you’ll also get unlimited use of more than one million ATMs globally, including non-NAB ATMs

Unlimited
access via

• All non-NAB ATMs in Australia and overseas ATMs at no extra cost
• NAB branch deposits and withdrawals
• NAB Internet Banking
• NAB Telephone Banking
• EFTPOS
• NAB Visa Debit
• Optional cheque book
  

 

[Mal]

The Bank will cover the charge of another institutions fee. According to nab's website:

In addition to branch and cheque access, you’ll also get unlimited use of more than one million ATMs globally, including non-NAB ATMs

I think one needs to re-view that page after 1 March. While I don't know how it's handled at the moment, a lot of ATMS in the US have charges built into them (particularly in places like Vegas). I believe the charge is directed at you in the transaction, not to the bank as part of the transaction interchange.

So Not sure how that's handled...

 

[spunkarooney]

I think you would better off with an account from National Australia Bank.

You have failed to discuss direct charging for ATM usage which is due to start on 2 March 2009.

NAB doesn’t appear to have stated how it intends to price the Gold Banking product when direct charging commences.

It may pay for you to read the thread before posting.

 

[spunkarooney]

The Bank will cover the charge of another institutions fee. According to nab's website...

NAB has not said that – well not in the section you quoted. The charges you have quoted from the NAB website as they were previously. NAB has not announced new pricing which takes into consideration direct charging (not for the Gold Banking account anyway).

For some other accounts NAB has said that it will charge 50¢ for using a non-NAB ATM, regardless of what the ATM owner direct charges.

Please people, do some research before making sweeping statements.

 

[mushypeas]

I guess I'm applying some wishful thinking along with some common sense.

The biggest selling point for the GOLD Banking and their Choice Package is the fact there are no ATM fees regardless of institution. This is a relatively new product suite and has had some strong marketing in the last few months. I personally find it difficult to believe that they would scrap this or not have a plan for how they'll continue to provide fee free usage of others ATM's.

Both these products charge a premium which I guess to a certain extent covers the charges. GOLD Cards are identified by the sequence of numbers (first four digits) so perhaps this will allow the ATM to identify in not to charging the customer directly but to nab instead.

Neither one of us a crystal ball so it's hard to predict.

 

[oz_mark]

That would require NAB to negotiate a deal with each of the ATM owners in Australia, and I am not sure they have done that. In any case, it is not a NAB fee that will be charged, it is a charge from the owner of the ATM.

Some of the smaller banks have been negotiating for some level of access. For example AMP Bank clients will likely be able to use CUSCAL ATM's, and HSBC clients will likely be able to use Westpac ATM's without charge.

I also understand Westpac hs been nogotiating with Citi, Members Equity and GE Money for similar access to its ATM network (i.e. effectively offer clients of those banks a discount on the fee when they use the Westpac network.)

I have not heard of anything about NAB negotiating any deals.

 

[mushypeas]

Why would it require nab to negotiate a deal with their competitors? They aren't seeking mutual access to ATM's. What I was proposing was the ATM can readily identify what cards belong to which bank and their type/class etc - So on certain cards, perhaps the ATM will debit a generic cost centre from the card issuing bank rather than the customer directly (exactly how the system works currently).

 

[oz_mark]

Why would it require nab to negotiate a deal with their competitors? They aren't seeking mutual access to ATM's. What I was proposing was the ATM can readily identify what cards belong to which bank and their type/class etc - So on certain cards, perhaps the ATM will debit a generic cost centre from the card issuing bank rather than the customer directly (exactly how the system works currently).

The regime is that by default the owner of the foreign ATM will directly debit the cardholders account. The other alternative is what the smaller bnks are doing and negotiting one way interchange fees. So to do what you want, NAB would have to negotiate with the owners of the ATM's that this is what they want. Why would ANZ, Westpac, CommBank otherwise care what card was being put in? If its foreign - charge it.

 

[Mal]

So on certain cards, perhaps the ATM will debit a generic cost centre from the card issuing bank rather than the customer directly (exactly how the system works currently).

Huh? Refer to my post earlier on how I believe certain ATM's in the US work, and how I believe the new system will work in Australia.

Do you expect ATM manufacturers to know that a card is a NAB Gold and not debit the cardholder vs the bank? The system is changing. We are moving towards a card debited scheme vs an interchange fee scheme. I like this scheme, as long as the banks play nicely (not really likely, but I hope)

This is the major reason I've held off from applying for a NAB Gold Visa Debit. The card looks very attractive, but I don't see it's attractiveness after the new scheme is introduced.

 

[oz_mark]

This is the major reason I've held off from applying for a NAB Gold Visa Debit. The card looks very attractive, but I don't see it's attractiveness after the new scheme is introduced.

I was looking at it too, but wanted to see if they came up with a solution to this issue. There are possible solutions but I guess it comes down to whether NAB want to wear the cost of them.

 

[Diesellife]

Here is a thought:

Since NAB gold doesn't charge oversea atm fees anyway... has anyone tried to take cash from the states (with additional fee imbued in the machine)?

I remember I went to the states and took cash out of ATM...as far as I remember, I did not get charged nor asked for additional amount....Unless the statement is a included the final amount without breakdown....

This should be a clear idea when they implement that system in AUS? I assume....

 

[Mal]

I remember I went to the states and took cash out of ATM...as far as I remember, I did not get charged nor asked for additional amount....Unless the statement is a included the final amount without breakdown....

This should be a clear idea when they implement that system in AUS? I assume....

I believe it's only certain machines in the U.S - ie the machine owner is allowed to implement the charge if they want, but most don't.

As indicated, you're more likely to see these types of charges in pubs/clubs/strip joints/houses of ill repute/gambling centers/convenience stores etc rather than mainstream machines sitting in the street.

Can NAB distinguish these fees written onto your receipt? Maybe - but unlikely. Perhaps they'll update their page sometime in the next month and a half to indicate their position.

 

[oz_mark]

Can NAB distinguish these fees written onto your receipt? Maybe - but unlikely. Perhaps they'll update their page sometime in the next month and a half to indicate their position.

It's going to depend on the implementation. It could be done as one transaction (your amount + ATM owners) or it could go through as two transactions. Given what I know of other systes, I suspect the latter and they may be able to deal with it.

As you say, until they publish their position we won't know.

 

[Dave Noble]

I believe it's only certain machines in the U.S - ie the machine owner is allowed to implement the charge if they want, but most don't.

A lot do. It costs me just as much to take money out of a Chase Bank ATM as it does to use the ATM in the hotel lobby

As far as NAB goes, the terms of their gold account says that they will not charge any ATM fees ; it states "Unlimited access via All non-NAB ATMs in Australia and most overseas ATMs at no extra cost ". I don't see how if thr ATM owner charges a fee how this would affect the terms since NAB would still not be charging for the withdrawal

March 2nd will be when this is clarified methinks

Dave

 

[Dave Noble]

It's going to depend on the implementation. It could be done as one transaction (your amount + ATM owners) or it could go through as two transactions. Given what I know of other systes, I suspect the latter and they may be able to deal with it.

As you say, until they publish their position we won't know.

If it as my foreign ATM withdrawals go, they show as 1. e.g. a few days ago I withdrew USD200 with a USD2.75 fee from Colonial bank; it shows on my account as

20/01/2009 Visa Cash Advance 18Jan Usd202.75 Colonial/6360 W Plan $305.20

I would be surprised if it went through as 2 since many bank customers have a limited number of transactions a month before they start paying fees. Having 2 taken out for 1 cash withdrawal wouldn't be v popular methinks

Dave

 

[oz_mark]

I would be surprised if it went through as 2 since many bank customers have a limited number of transactions a month before they start paying fees. Having 2 taken out for 1 cash withdrawal wouldn't be v popular methinks

You could well be right. We'll be finding out in the not too distant future.

 

[spunkarooney]

If it as my foreign ATM withdrawals go, they show as 1. e.g. a few days ago I withdrew USD200 with a USD2.75 fee from Colonial bank; it shows on my account as

20/01/2009 Visa Cash Advance 18Jan Usd202.75 Colonial/6360 W Plan $305.20

I would be surprised if it went through as 2 since many bank customers have a limited number of transactions a month before they start paying fees. Having 2 taken out for 1 cash withdrawal wouldn't be v popular methinks

Dave

The fact is that some ATMs will charge as one transaction and some as two. It’s a complex scenario with many different ATM types and backend systems.

Obviously when the fee is charged as two transactions your financial institution will know from the transaction type that one is a direct charge and the other is your actual transaction. You won’t be charged a fee for the fee. It’s never worked like that.

There seems to me a lack of commonsense in some of these posts.

You can obtain detailed information on the ATM reforms from the Reserve Bank of Australia http://www.rba.gov.au/ and from the Australian Payments Clearing Association http://www.apca.com.au/.

Some informed discussion might be nice – beats all of this speculation!

 

[mushypeas]

i spoke to someone at the nab, whos a fairly senior business banker and they believe the gold package will be unaffected and will continue to be fee free...

according to them the backend system will know what breakdown between the fee and the cash dispensed just as it knows the difference between a merchant purchase & cash out at say bigw/kmart via eftpos etc

time will tell i guess

 

[Diesellife]

i spoke to someone at the nab, whos a fairly senior business banker and they believe the gold package will be unaffected and will continue to be fee free...

according to them the backend system will know what breakdown between the fee and the cash dispensed just as it knows the difference between a merchant purchase & cash out at say bigw/kmart via eftpos etc

time will tell i guess

Well that is a happy news for me as I love to withdraw cash from their rival bank...However I'm still being very skeptical about the statement...After all, it really depends on how you interpret the statement for gold banking...

NAB gold banking can be still "fees free" (from nab's perspective) but instead the user may be charged by third parties...So nothing is firmed until the policies roll-out in March...(Fingers X NAB will continue to carry the fees for me)

 

[mushypeas]

youre spot on diesel.... just a waiting game unfortunately