Coles supermarket is leading the way in knocking down over-inflated bank ATM fees, with news that they are launching their own ATM network. Coles’ reputation for keeping prices ‘down down’ will now see Australians only pay $1 for ATM withdrawals compared with the $2+ that most banks charge for withdrawals from foreign ATMs.
The supermarket chain is currently trialing ATMs in two Melbourne stores. If the trial is successful we’ll see another 30 ATM’s rolled out across the country according to Courier Mail.
While we’re happy to see Coles launch the cheapest ATMs in the country, it is a surprising move, especially as you can already get cash out via EFTPOS at the Coles store register (with or without a purchase), completely free. Maybe people will think $1 is worth paying just to skip the shopping queue?
Almost all of us at some point have chosen to pay the $2 (or more!) fee charged by a bank for using their ATM instead of traipsing around in search our own bank’s ATM. It is estimated that Australians spend around $600 million a year on ATM fees and Coles are going after a slice of the ATM fee pie.
Here’s how Coles compares with other major bank ATMs:
So the big question is now, how will the banks react? Hopefully it will mean an end to the ATM rip off and cheaper ATM fees across the board that are more aligned to the true cost of processing an ATM transaction.
If your bank has a lacklustre ATM network compare all bank accounts on Mozo and find a better deal.
You can skip ATM fees altogether by taking cash out when you use EFTPOS or choosing a bank account like ING DIRECT’s Everyday Orange bank account which will reimburse any ATM fee provided you withdrawal over $200.