Customers prefer the nearest EFTPOS
The choices are either taking the ATM fees or a long waiting time in line for an EFTPOS machine.
The preference now for the free processing with an EFTPOS machine is taken as a sign of changing customer tastes. John Simon, chief manager of the Reserve Bank Australia's (RBA) payment policy department said, “These are good things. People are making rational decisions.”
Simon disclosed a decrease last year in the total number of ATM transactions and in the number of transactions at ATMs not owned by the customer's bank. He said, “Consumers are paying $120 million a year less in fees.”
For customers who transact through an ATM not owned by their bank, Datamonitor senior analyst Harry Senlitonga said, “Fifty per cent of consumers who switched to the Commonwealth Bank are looking for access to a better ATM network.”
Commonwealth Bank (CBA) has the largest single ATM network. Its customers have free access to more than 4000 ATMs after it bought Bankwest.
The National Australia Bank (NAB) is also getting more ATM clients because it maintains a $1.50 fee for customers of other banks. Senlitonga said, “Fifty eight per cent of consumers indicated better fees as one of their reasons to switch their transaction account to NAB.”
RBA's Simon insisted, however, “At the moment the issue for the consumer is whether there is a charge or not. The level of the charge is not so important.”