Latest ATM Fees May Affect Country Users
10 February 2009
ATM owners will soon be able to charge additional fees for ATM users as of next month in rural areas based on the latest rules set out by the Reserve Bank.
Under the new rules, it will only be people living in the country that will be affected with no rules marked out for city dwellers.
The proposed rules state that ATM owners can charge cardholders a direct fee when using their machines as long as the charge is displayed before any withdrawals are completed.
The new rules are due to commence on March 3rd when the Reserve Bank of Australia will eliminate the interchanging fees that banks currently charge each other when customers use different ATMs.
Presently, there is a charge of approximately $1 made between banks when customers use another banks ATM with the charge then passed onto customers at a marked up price. However, this will not improve after the new rules take effect as while the banks will no longer be charged the $1 fee, they may continue to charge their customers for using another ATM.
Already, National Australia Bank customers have been informed that they will be charged 50 cent for any withdrawals made on other banks or credit unions ATMs.
The Consumer Action Law Centre has stated in a submission to the Reserve Bank that country ATM users are in need of better protection from hidden charges as they are already at a disadvantage with banks not having much in the way of competition, allowing them hold higher rates if they chose.
Consumer Action stated that customers should not be charged for using different institution's machine than their banks or credit union. The submission further stated that there should be a cap on fees in rural areas, especially if fees get significantly higher than in cities.
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