ATM usage fees

ATM usage fees are the fees that many banks and interbank networks charge for the use of their automated teller machines (ATMs). In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users. Many people oppose these fees because ATMs are actually less costly for banks than withdrawals from human tellers.

Two types of consumer charges exist: the surcharge and the foreign fee. The surcharge fee may be imposed by the ATM owner (the deployer or independent sales organization) and will be charged to the consumer using the machine. The foreign fee or transaction fee is a fee charged by the card issuer (financial institution, stored value provider) to the consumer for conducting a transaction outside of their network of machines in the case of a financial institution.

On 3 March 2009 Direct Charging (surcharging) on Australia’s ATM networks was introduced. The Reserve Bank of Australia says this reform will result in benefits to competition and efficiency in the Australian ATM system.

Most banks, (Commonwealth Bank [CBA], ANZ and Westpac/St.George) levy a $2 "ATM service fee" for withdrawals and balance inquiries at their ATMs by non-customers, NAB charges $2.00 (50c for an enquiry), Suncorp $2.20 (80c for an enquiry).

Independent ATM operators contend with highly variable cost bases, volatile transaction volumes, extremely low transaction volumes (compared with a high st bank) and cash floating costs. The only cost recovery method available to an independent ATM operator is the ATM fee. Arguably, the ATM fee represents a low cost payment alternative to the gouging from credit card companies to consumers and merchants.

Bendigo Bank,Bank of Queensland, and Suncorp do not charge any fee to use another bank's ATM. BankWest does not charge users for access to foreign ATMs.

ING Direct Australia reimburse domestic ATM fees provided that customers deposit AU$1000 per month as part of a loyalty program, however do not operate any of their own ATMs. .

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