ACCC grants interim authorisation to ATM sub-network fee free agreement

The Australian Competition and Consumer Commission has granted interim authorisation to an agreement between members of the rediATM branded sub network of automatic teller machines not to charge each other's cardholders a fee for transactions at ATMs owned by members.

Interim authorisation has also been granted for rediATM network members to coordinate the deployment of any new ATMs.

The rediATM network is an ATM sub-network of around 1440 ATMs primarily owned and operated by credit unions and building societies. The National Australia Bank is also proposing to join the rediATM sub-network. This will bring the number of ATMs in the network to around 3100.

Following reforms to Australia's ATM system, introduced by the Reserve Bank of Australia in conjunction with the banking industry on March 3 2009, customers can be charged directly by ATM operators for withdrawals. Most banks do not charge their own cardholders for withdrawals.

Granting interim authorisation for members of the rediATM sub-network to agree not to charge each other's cardholders will allow their cardholders to access direct fee free transactions at a wider range of ATMs while the ACCC considers the merits of the substantive application for authorisation.

In granting interim authorisation the ACCC also had regard to the RBA's advice that the arrangements, including the NAB's involvement, are consistent with the spirit of the ATM reforms.

The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC.