icash hikes fees

New fees for ATMs hiked on the quiet NICK GARDNER From: The Sunday Telegraph February 20, 2011 12:00AM
CASH-MACHINE operators have quietly hiked ATM fees by 25 per cent, with one company targeting drinkers and gamblers by introducing the rise only in pubs and clubs.
Typical transaction charges for "independently owned" ATMs in these venues have increased from $2 to $2.50, The Sunday Telegraph has learned.

The increases are being imposed by three of the nation's largest independent ATM owners, who run more than 13,000 machines between them - around half of the nation's entire ATM network.

The price hikes are expected to raise as much as $100 million a year in extra revenues.

Last week, Cashcard, which owns 5500 ATMs around the country, hiked its fees from $2 to between $2.20 and $2.50 on machines positioned in pubs - but not in other locations.

"We feel this increase reflects the changing commercial cost of maintaining Australia's largest ATM network and is necessary to continue providing customers with access to cash in convenient locations," a spokesman said.

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Customers Limited - which has 6000 machines nationwide - is increasing fees across its fleet from $2 to $2.50.

In a statement, the company said it would continue to monitor opportunities for further increases in charges.

Another operator, iCash Payments, which owns about 1500 machines, will increase its fees from the beginning of March, from $2 to $2.40.

The firm recently wrote to owners of premises where its machines are located, offering them the opportunity to limit the increase to 30c, but stressing the 10c reduction would have to be deducted from their share of the transaction fees.

Nobody at iCash Payments was available for comment.

The fee rises are the first industry-wide price hikes since the Reserve Bank introduced the so-called "direct charging" regime in April, 2009.

The rules allowed ATM owners to charge as much as they like for transactions as long as they display the price on the screen beforehand.