Commonwealth Bank, Westpac and ANZ to axe ATM fees

Cheryl Sanders
September 24, 2017

"Australians have complained for some time about being charged fees for using another bank's ATM", said Matt Comyn, Commonwealth Bank's group executive for retail banking services.

Commonwealth, ANZ and Westpac had all recently made the announcement that they were scrapping the $2 fee.

A report by the Reserve Bank of Australia past year revealed that Australians are actually using ATMs less because of the rise of EFTPOS and Pay Pass, which make it easy for people to pay without cash exchanging hands.

All four banks cited the unpopularity of the fee with consumers, who were forking out A$500 million (NZ$537m) a year for withdrawing their own cash.

"We know ATM fees are one of the most unpopular and while our customers have benefited from our network of ATMs across the country, this is another example of acting on customer feedback as well as genuine reform from the industry".

The move comes as the Commonwealth Bank faces massive fines after being accused of "serious and systemic" breaches of anti-money laundering and terrorism financing laws.

The fee will still apply to customers using overseas bank cards.

Consumer group Choice spokesman Tom Godfrey said the bank's decision could mark the beginning of the end for the $2 ATM withdrawal fee.

Australia's four largest banks have scrapped cash withdrawal charges for all users, as the banking industry tries to salvage its reputation after a series of scandals.

ANZ also announced they would dump ATM fees from October.

"The Commonwealth Bank has taken the march on that issue", Morrison told reporters today, referring to the elimination of cash withdrawal charges.

The Commonwealth Bank now won't charge customers from other banks to use its ATMs.

"A competitive banking system is good for customers and good for the sector".

CBA's group executive of retail banking services Matt Comyn said ATM fees had always been "unpopular" and consumers were fed up with been stung.

"We want all Australians, whether they are Westpac Group customers or not, to benefit from one of Australia's largest ATM networks", he said.

Research by other lenders has found cash machine charges are the most loathed of all bank fees.

Labor leader Bill Shorten kept up pressure for a royal commission.

ANZ group executive Fred Ohlsson said his bank will get rid of the $2 fee on its 2300 ATMs from early next month.

"Imagine how we could get better banking for all Australians if we had a banking royal commission", he said.

Other reports by iNewsToday