Hidden Atm Fees To Be Outlawed
The Age
Saturday September 1, 2007
AUSTRALIANS withdrawing money from ATMs in future will have to be told first how much it will cost them for the transaction, under new reforms negotiated between government regulators, the banks and other ATM owners.
Under new rules endorsed this week by the Federal Government's Payments System Board, the charge for each transaction will be shown on the ATM screen before the customer gives a final OK for the transaction.The board also announced two other reforms to open up access to the ATM system and make fees more transparent: ? Customers of one bank who withdraw money from another bank's ATM will no longer pay a penalty fee to their own bank, but will face direct charges from the bank owning the ATM, to be notified on screen and taken out of their account.? Other companies will be allowed to set up ATMs so long as they meet the same rules now followed by the banks, building societies, credit unions and multi-agency providers such as Redi-teller and Cashcard.Announcing the reforms, the Reserve Bank said the new system would make pricing "more transparent" to users of ATMs."The board welcomes the proposed reform model," it said."Consumers will be able to see the fee charged by the ATM owner on the screen of the ATM at the time of the transaction, and will be given the option of cancelling the transaction if the fee is too high," the Reserve said."The board also expects the removal of hidden interchange fees will lead to substantial reductions in, and perhaps the abolition of, the 'foreign' fees that most banks currently charge their customers for using ATMs owned by another institution."The reforms were proposed by the Australian Bankers' Association, which revised earlier plans after opposition from the Payments System Board, which brings together the Reserve Bank and the Australian Prudential Regulation Authority.But ABA chief executive David Bell said the banks and the board had yet to agree on when the new system should begin. The board has proposed a starting date of October 1, 2008, but the banks argue the RBA should first invest in a consumer education campaign.
© 2007 The Age