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Date Published : Thursday, January 17, 2008
Two of Australia's largest banks have been slammed by consumer watchdogs for adding a $2 charge when their customers use the ATM of another bank.
Both ANZ and Commonwealth Bank have increased the charge they add to customers bank accounts for using other ATMs in a bid to keep consumers loyal to their brand.
The decision will mean all of the largest four banks in the country will charge $2 a time for using "foreign" cash machines, adding to the financial gloom recently brought on by rising home loan interest rates.
A Commonwealth Bank spokesperson told the Herald Sun: "It's only bringing us into line with fees charged by our competitors."
However, consumer watchdog Choice has claimed that there was no justification for the fee increases, when the cost to banks for a foreign transaction has remained steady at $1.
Choice spokesman Christopher Zinn told the newspaper: "It's funny that technological progress normally brings down charges, which we've seen with all sorts of things. But with ATMs, perhaps uniquely, they've gone up.''
The Reserve Bank of Australia (RBA) has long been concerned at the profits made from such charges and is looking to reform the ATM charge market during the coming year.
Under an agreement due to be introduced in October made between the RBA and the Australian Bankers' Association (ABA), customers who use a "foreign" ATM would be charged directly by the "foreign" bank, simplifying the procedure.
ABA chief David Bell told the Brisbane Times: "The reforms which have been required by the RBA represent a significant change to the ATM system in Australia and the way customers will be charged.
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