The great ATM fee gotcha

The great ATM fee gotcha

Next time you go to the ATM, think twice before clicking yes to that $2 withdrawal fee. New research from the Mozo team found Australian banks are raking in $555 million each year from people like you, who need to access money outside your bank’s ATM network. The figure is staggering, especially when you consider all the groceries, new tech and holidays that could buy.

Unfortunately the Reserve Bank of Australia’s 2009 ATM reforms, aimed at making ATM pricing more transparent and flexible, have failed miserably with 8 out of 14 ATM operators since increasing their ATM charges.

While the Big Four’s ATM withdrawal fees remain at $2, independent ATM operators Cashcard and CashConnect – found in convenience stores, service stations, pubs and clubs – and other bank branded ATMs have withdrawal fees as high as $2.50 per transaction.

You can easily avoid the high price of ATM withdrawal fees by following these 5 tips:

1. Know your bank’s ATM network. Find out which networks you can use for free, for example St.George customers can make a fee free withdrawal from Westpac, St.George and BankSA ATMs and NAB customers can withdraw from the NAB and rediATM network.

2. Get money out at a supermarket. A great way to avoid the ATM bite, is by withdrawing money for free at the checkout when you buy the fruit and veg at Coles, Woolworths or Aldi.

3. Check your balance online. Don’t pay a balance inquiry fee when you can easily check your account balance for free online using your smartphone.

4. Choose the right card for your ATM habits. If you regularly take cash out and don’t want the hassle of searching for network ATMs, get Australia’s only bank account that lets you make fee free withdrawals at any ATM, the ING DIRECT Orange Everyday.

5. Use other payment methods. When you have the opportunity pay by “tap and go” or eftpos, rather than withdrawing from the nearest ATM with a hefty withdrawal fee attached.

For more information on the high price of ATM fees in Australia read our blog on the ATM trap and checkout our ATM infographic here.

Have you been stung by an outrageous ATM fee recently?

The great ATM fee gotcha was last modified: November 16, 2015 by Rebeccah Elley

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3 Comments - Write a Comment

  1. We operate independently owned ATMs. Maori Chief hotel in South Melbourne, or the Fox hotel in Collingwood only charge $2 for a cash out transaction. From time to time, some ATMs have operated for $1.20, $1.80 or free, with little impact to trading volumes. Some other venues might charge $2.50. Some nightclubs might be a bit higher. When you consider the cost of the Atm at $7-$9k, support and servicing, and bank fees, any fee below $3 is still ok really – less than a cup of coffee. Some high volume venues might be making a nice profit, but the reality is that most of these independent ATMs are breaking even. It’s a low price to pay when you consider the $7billion annual fee for credit cards created under the illusion of convenience and low cost. These articles are misinformed and sensationalist.

    Reply
    1. Mozo

      Hi Paul,

      Thanks for your comment. Here at Mozo, we are all about trying to help everyday Australians save money and at the time of writing in 2014 many consumers were being charged ATM withdrawal fees at a high rate. Thankfully in 2015, consumers have caught onto the cost of ATM fees and a recent smh.com.au article shows ATM use is on the decline:

      Mozo Team

      Reply

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