The Australian Competition and Consumer Commission has granted interim authorisation to an agreement between Suncorp Metway and the Bendigo & Adelaide Bank not to charge each other's cardholders a fee for transactions at ATMs they own.
Following reforms to Australia's ATM system, introduced by the Reserve Bank of Australia in conjunction with the banking industry in March 2009, customers can be charged directly by ATM operators for withdrawals. Most banks do not charge their own cardholders for withdrawals.
Under the reforms there is the potential for larger financial institutions to gain a competitive advantage over smaller financial institutions by virtue of their larger network of ATMs at which they can continue to offer their cardholders direct fee free transactions.
Recognising this, the reforms provide for smaller financial institutions to develop arrangements such as those proposed by Suncorp Metway and the Bendigo & Adelaide Bank to facilitate access to direct fee free transactions at a wider range of ATMs for their cardholders.
Granting interim authorisation allows Suncorp Metway and Bendigo & Adelaide Bank customers to access direct fee free transactions at a wider range of ATMs while the ACCC considers the merits of the substantive application for authorisation.
The ACCC has previously authorised similar arrangements between members of the Feesmart branded and rediATM branded ATM sub networks.
Authorisation provides protection 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 authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
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.