The Australian Competition and Consumer Commission is proposing to authorise an agreement between members of the rediATM network not to charge each other’s cardholders a fee for transactions undertaken at ATMs owned by any rediATM member.
The rediATM network consists of just under 100 members, most of whom are credit unions, and the National Australia Bank.
Under reforms to Australia’s ATM system introduced in March this year, customers are now charged directly by ATM operators for transactions. Most banks do not charge their own cardholders for transactions.
According to the ACCC, arrangements such as those proposed by rediATM members allow members to provide their customers with direct fee free transactions at a wider range of ATMs.
“The ACCC considers the agreement between rediATM members not to charge each other’s cardholders for ATM transactions will be pro-competitive, assisting to ensure that financial institutions with smaller ATM footprints are not at a competitive disadvantage to larger institutions,” ACCC chairman Graeme Samuel said.
The ACCC is now inviting comments on the proposal. Please visit the ACCC website for more information.