Australian customers are getting gouged by higher ATM fees

AUSTRALIANS are forking out more on ATM charges as the cost to withdraw their own cash increases at airports, clubs and festivals.

AUSTRALIANS are forking out more on ATM charges as the cost to withdraw their own cash creeps up.

And captive audiences are among the worst hit — with airports, clubs, festivals, events and adult entertainment venues — stinging customers with exorbitant charges.

One Melbourne bar which has since closed its doors slugged a customer a whopping $35 just to withdraw cash — hitting them with a 3.5 per cent fee on the amount withdrawn of around $1000.

Multiple airports across the country have also stung customers with fees as high as nearly $23 catching unsuspecting customers out with high charges before they jet off.

And independent ATMs — those as festivals or popular events — have slugged customers amounts as high as $12.

Australian ATM fees have been around for a long time.

While the information revealed to News Corp Australia found a majority of consumers getting stung with an ATM withdrawal are charged $2, those getting hit with charges of $2.50 and upwards is on the rise.

Banking industry sources have revealed that about 59 per cent of ATM charges pay a $2 fee — down from 64 per cent.

But those paying $2.50 and upwards have all increased in September compared to June by several per cent.

Consumers being charged $2.50 is about 28 per cent of all ATM fees charged and the remaining 13 per cent are paying fees of $2.80 and upwards.

Withdrawing money from ATMs can become more expensive. Picture: iStock

While some of the charges are from non-bank ATMs, Australian Bankers Association’s chief executive officer Steve Munchenberg said overall consumers were paying less on ATM fees.

“Reserve Bank data shows that Australians are paying $60 million less in ATM fees now than what they were in 2010,’’ he said.

“This is because the number of transactions that are done at a foreign ATM (not their own bank) has fallen to the lowest level on record, while the average fee charged for a foreign ATM withdrawal remains about the same as what it has been for the past five years, $2.”

He also said more than half of the nation’s ATMs in Australia are not owned by banks and their fees are usually higher.

Taking money from a foreign ATM can be even more costly. Picture: iStock

Mr Munchenberg urged banking customers to use their own institution’s ATM network to avoid these charges.

But consumer watchdog Choice spokeswoman Nicky Breen said with budget strains over the festive period consumers are stung even more by these unnecessary charges.

“With budgets stretched a little thin over the festive period, some consumers may end up feeling frustrated when they’re slugged with a $2.50 charge or more to access money from an ATM,’’ she said.

“When it comes to reducing ATM and transaction fees it pays to do your homework, look for an account which offers unconditional, free own-bank ATM.”.