ATM fees look set to come down � for most (AUSTRALIA).
Online 14/01/09
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From 3 March 2009, changes to the fees charged to use automated teller machines (ATMs) will increase transparency and competition.

Previously, secret �interchange� fees were passed between financial institutions and ATM owners when consumers used another bank or company�s �foreign� ATM. Soon, all such fees will be unbundled, out in the open and charged directly.

From March, when you withdraw cash from a foreign ATM, you�ll be charged a fee by the machine owner, and your own bank may or may not also charge a fee. It�s hoped that the two fees combined will be lower than what you�re currently paying.

The foreign ATM operator�s fee will be displayed on screen after you enter your PIN, giving you the option to proceed with the transaction or cancel it at no cost. However, your own bank�s fee for such foreign transactions won�t be displayed, so check what it will charge.

There are around 26,500 ATMs in Australia, 43% of which are bank-owned; the rest by building societies, credit unions and other independent companies running machines such as �Cashconnect�, �Kwik Cash�, �rediATM� (owned by credit unions), �Cashcard� and �iCash�.

Part of the intention behind ATM fee reform is to let competitive forces take hold, resulting in lower fees for consumers, particularly in areas where there�s lots of competition, such as capital cities.

However, CHOICE (Australia) is concerned that where there�s less competition, such as in rural areas, casinos, pubs and clubs, we may see higher prices. We also believe financial institutions should remove foreign ATM fees altogether so consumers don�t get slugged twice.