Why has Reserve Bank change the ATM fee reform system?

1 ANSWERS

1. Guest4651
   

   The system has changed by Reserve Bank to ensure that: fees paid for cash withdrawals are more transparent and are subject to competitive pressure; ATMs will continue to be widely available and provide consumers with choice; and competition between financial institutions is enhanced.
   Most people do not pay to use an ATM that is owned by their own financial institution. However, some financial institutions charge their customers a fee to use a machine owned by someone else, known as a ‘foreign fee’. Where applied, foreign fees are not disclosed at the ATM; they usually appear only on an account statement. These fees are not transparent and cardholders have no choice in the level of foreign ATM fees they pay to their financial institution. Prior to March 2009, foreign fees were as high as $2 per transaction.
   A package of reforms to the ATM industry has been introduced by RBA to address these problems. One element of these reforms is the elimination of the fee paid by your bank to the ATM owner, replaced by a direct charge by the ATM owner. Many banks have removed foreign fees as a result of the changes, although some maintain a reduced fee.

   Report (0) (0)  |   12 years, 8 month(s) ago