ACCC grants authorisation to Suncorp-Metway and Bendigo and Adelaide Bank ATM fee free arrangements
The Australian Competition and Consumer Commission has granted authorisation to an agreement between Suncorp-Metway and Bendigo and Adelaide Bank not to charge each other's cardholders a fee for transactions at ATMs they own.
Under reforms to Australia's ATM system introduced in March last year customers are now charged directly by ATM operators for transactions. Most banks do not charge their own cardholders for transactions.
Arrangements such as those proposed by Suncorp and Bendigo Bank provide customers of financial institutions which have a smaller ATM footprint with access to more ATMs without incurring a direct fee.
"The ACCC considers the agreement between Suncorp and Bendigo Bank not to charge each other's cardholders for ATM transactions will be pro-competitive, assisting to ensure that they are not at a competitive disadvantage to institutions with larger ATM networks", ACCC chairman Graeme Samuel said.
The ACCC has previously authorised separate agreements between members of the rediATM network and members of the Feesmart network not to charge each other's cardholders for transactions undertaken at any ATM within their network.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
