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Banks remove ATM Direct Charging

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On 24 September 2017, Comm Bank announced the removal of ATM direct charges to non-Comm Bank clients (including First Option Members) that use the Comm Bank ATM network.

Westpac, ANZ and nab quickly followed with similar statements. The Comm Bank changes are immediate, where as the others will take some weeks to come into effect.

Update as at 27 November 2017

The following banks have dropped their ATM direct charge fees:

  • Comm Bank
  • ANZ
  • Westpac

This is a major change to the ATM market in Australia.

The implications of these changes will take some time to work through. With the increased use of non-cash services, such as Visa payWave and Apple Pay, ATM usage has been in decline for some time. This has reduced the revenue made by banks from ATM direct charging. However, the costs of running ATMs remain very high. This change by the banks may be paving the way for ATM consolidation in an attempt to reduce their costs.

The great news for First Option Members is that they will be able to use the bank ATMs listed above without charges.

Dean Jepsen, First Option CEO explains the current situation, “While it may seem strange to encourage our Members to use bank ATMs (rather than a rediATM), there is a good reason. First Option does not own the rediATM network, so it incurs a cost every time a First Option member uses one. While we don’t like charging fees to our Members, First Option has a rediATM fee in place to recoup some of this cost.”

First Option will be monitoring developments closely and the effect it has on Members.

At this stage, the best option for Members and First Option is to use a bank ATM (listed above) where there is no direct charge fee.