The banking and finance industry together with the Reserve Bank of Australia (RBA) has developed how the new ATM direct charges work with aims to provide better transparency and choice to cardholders.
Cardholders will now be shown the ATM owner fee prior to making a transaction at a foreign ATM or a “non-customer” ATM. You will have the option to either accept the fee or reject and cancel the transaction. This will be effective as of March 3, 2009.
A foreign ATM is a any ATM that doesn’t belong to a financial institution. These types of ATMs are usually found in convenience stores, pubs and other random places. Majority of these foreign ATMs are owned by Customers Limited.
A “non-customer” ATM is an ATM that belongs to a financial institution that you are not a cardholder with (i.e. Commonwealth Bank customer withdrawing from a St George ATM).
You may also be charged for a disloyalty fee by your financial institution if you withdraw from a different ATM. Basically, you may be charged two kinds of fees: direct charge and disloyalty fee.
Below are some breakdowns of 4 major banks and their ATM charges.
- Commonwealth Bank
- $2 Direct Charge Fee (for non-CBA customers – inclusive of balance enquiries)
- No disloyalty fee
- Free unlimited ATM access for CBA & Bankwest customers (may be subject to conditions)
- Largest ATM network in Australia
- National Australia Bank
- $1.50 Direct Charge Fee (for non-NAB customers – extra $0.50 for balance enquiries)
- $0.50 disloyalty fee (used to be $2)
- Free unlimited ATM access for NAB customers (may be subject to conditions)
- Westpac
- Direct Charge – unsure
- No disloyalty fee (used to be $0.30)
- Free unlimited ATM access for Westpac & St George customers (may be subject to conditions)
- ANZ
- $2 Direct Charge Fee (for non-ANZ customers – inclusive of balance enquiries)
- Disloyalty Fee – TBD
- Free unlimited ATM access for ANZ customers (may be subject to conditions)
So here are some tips on how to save on your ATM charges,
- Make sure you use your own financial institution ATMs
- If you have to use a “non-customer” or foreign ATM, make sure you withdraw a lump sum to avoid withdrawing again
- Be wary of using foreign ATMs as they can randomly set their own fees. Make sure on a big night out (before getting drunk), withdraw sufficient cash to last you all night
- Get cash out from EFTPOS transactions (I’ve tried it at McDonalds by purchasing a $1 apple pie!)
Hopefully this will help you be more informed with the new changes to how ATM charges work.