Australians getting hit with huge ATM fees costs to access their own money
Customers are being charged exorbitant fees of up to $21 to access their own money from ATMs — but it is even worse for Aussies using overseas machines.
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Exclusive: Customers are being charged exorbitant fees of up to $21 to access their own money from Australian ATMs, concerning new figures show.
But it is even worse for customers using overseas machines – some are being hit with charges of more than $250 just to get cash out.
Banking sources have revealed customer data to News Corp showing some of the heftiest charges pinging customers in the past 12 months.
The data showed customers were being charged up to $21 to access their own money from machines at adult entertainment venues in Melbourne’s CBD.
Customers withdrawing cash while overseas were also pinged heavily, with popular destination hot spots including Las Vegas proving the biggest cash traps.
One customer withdrew the US$1000 – or at the time the equivalent to A$1414 – and paid fees totalling $283.
While in another instance a customer withdrew US$800 – the equivalent of A$1183 – and paid fees totalling $236.
These fees could include an ATM charge as well as a percentage fee on the amount being withdrawn.
In 2017 the big four banks all dumped ATM charges for customers using machines within their networks in Australia.
Despite this some smaller independent ATM operators and some banks still charge customers when they go to access their own cash.
Financial comparison website Mozo’s spokeswoman Kirsty Lamont said Australians were getting stung too easily by excessive rates particularly when overseas.
“Australians are being hit with sky-high ATM fees overseas when they use a card that isn’t designed for overseas travel,” she said.
“Just taking your everyday bank debit card overseas could see you slugged up to $5.50 each time you make an overseas ATM withdrawal.”
Ms Lamont said on Mozo’s database there are 24 financial institutions that don’t charge ATM fees so customers should “shop around and save”.
Some banks including Citi, HSBC, ING, Macquarie and UBank do not charge customers ATM charges domestically or internationally and they also have no transaction fees on purchases overseas.
It is also important to plan, as often the high charges apply in establishments where there are no ATMs close by leaving customers with little or no option but to use the business’s machines.
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Choice’s spokeswoman Erin Turner urged consumers to check the fees associated with their account to understand if they would be charged when withdrawing money.
“There are plenty of fee-free bank accounts available that makes a switch worthwhile,” she said.
“If you’re paying account keeping or regular fees for basic withdrawals then you’re paying too much.”
Ms Turner also said it was important for people travelling overseas to give thought to how they would access their own cash.
ATMs are on the decline in Australia, figures obtained by News Corp in September showed Westpac removed 349 ATMs in the 12 months prior, while ANZ ditched 58.
The Commonwealth Bank removed 208 ATMs in the 12 months to June, while NAB bucked the trend and increased ATM numbers by 22 in a 12-month period.