THE most hated of all bank charges — the commission for the ATM — was consigned to history in what would be a $500 million a year of victory for consumers.
The catalyst is a shock move from the Commonwealth that you are doing 3400 Atm fee-free for any user, regardless of the fact that they the bank, starting today.
Cut with the axe the current $2 charge for non-CBA customers the cost of the nation’s largest bank tens of millions of dollars a year and puts his rivals under extreme pressure to follow the example.
The Commonwealth Bank has removed ATM charges for customers who use their machines. Photo: Supplied
Consumer group Choice spokesman Tom Godfrey said the decision could trigger the death of the ATM fee.
“Access to your money from a bank account is an essential service that should be free for all, rather than a disadvantage of it,’ Mr Godfrey said.
“The transition from the Commonwealth Bank to stop charging non-customers to withdraw money it is a win for consumers and sends a clear message to other banks that it is time to axe the tax.”
Federal Treasurer Scott Morrison has also urged Westpac, ANZ and NAB to respond.
Choice spokesman Tom Godfrey said the move by the CBA, it was a victory for consumers. Photo: Supplied
“I will always welcome positive initiatives from the banks that put customers in the first place, and this is one of them,” Mr Morrison said.
“So well done Commonwealth Bank. The ball is now in the field of CBA competitors to match them.”
Australians forked about $ 500 million in taxes last year for withdrawals from Atms owned by institutions other than their own, News Corp in Australia, analysis of the RBA data.
Women and young adults are more likely to pay the fee, rather than the trek to its bank, according to the analysis of financial product comparison websites.
About 40% of the 50 million atm withdrawals each day has a charge attached.
CBA group executive of retail banking services Matt Comyn said ATM fees had long been “unpopular” and consumers have been fed with the affected state.
CBA Matt Comyn said ATM fees had been abandoned by our customers. Image: Tony Adams
The research of the other lenders has found atm charges are the most hated of all bank charges.
“It’s very unpopular and I’m sure people will be happy that you no longer have to pay and have access to the largest ATM network in the country for free must be a good thing,” Mr Comyn said.
“I hope that a small but significant change and positive step that will have an impact on all Australians.”
From today, users of CBA Atm will be warned that the levy will be free of charge.
Customers who use Atms that are not in their network, usually have to pay a fee to do so. Photo: Supplied
The Commonwealth is the surprise move comes after a horror run of negative publicity between scandals related to his insurance and financial planning divisions. It is also facing Federal Court proceedings in which the Australian Transactions Reports and Analysis Center that supports the bank failed to assess the risk of money laundering or financing of terrorism through the deposit machines. AUSTRAC claims the bank failed to comply with the law on the 53,700 occasions.
Originally published as CommBank dumps $2 ATM fee