Australia's Biggest Banks Nix the $2 Fee

In an increasingly cashless world, Australia’s biggest banks are making moves to try and encourage more consumers to use ATMs.

In a surprising move, CBA have abolished ATM fees for people withdrawing cash from accounts held at other banks meaning anyone anywhere can withdraw cash from any CBA ATM without being charged.

After Commonwealth Bank’s announcement, NAB, Westpac and ANZ were all quick to jump on the bandwagon and announce they too will abolish ATM fees. With CBA’s changes already coming into effect, they have seen a 24% increase in ATM usage from consumers who bank elsewhere.

With the recent introduction of cashless payment methods such as PayPass, PayWave and Tap & Pay, there is less reason for people to use ATMs to withdraw cash. In a forward-thinking effort, CBA are leading the charge in a new reform to increase consumer usage of ATMs.

Although this may come as a welcome surprise to consumers sick of hunting down a specific bank’s ATM to avoid the dreaded $2.00 fee, not all banks have jumped on board. CBA may have promised to remove fees from their ATMs but CBA subsidiary, BankWest, have only promised to remove fees from some of their machines. With around 650 ATMs found in 7/11 stores nationwide, these machines are expected to still charge a $2.00 fee as they are some of BankWest’s most profitable machines.

NAB will follow BankWest’s lead in not removing fees from their rediATM branded machines. With most of these machines being found in shopping centres, bars/pubs and BP service stations, the over 3500 ATMs are sure to continue making a significant profit for the lender.

Looking on the bright side, it’s now become a lot easier to withdraw cash when out and about with most ATMs now fee-free for Australian consumers

Posted in: News

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