ACCC gives interim approval for fee-free ATM scheme

The Australian Competition and Consumer Commission has given interim authorisation to those banks and ATM suppliers proposing to offer fee-free ATM services to 76 remote indigenous communities.

The Australian Bankers' Association has applied for authorisation on behalf of ATM Solutions (Customers), Cashcard Australia and 12 banks.

The decision to waive fees for ATM withdrawals and balance inquiries is, technically, price fixing and requires ACCC approval.

The ACCC will give a final determination after it has reviewed submissions (which close on June 26).

ABA chief executive Steven Munchenberg said the interim authorisation would allow the participants to put arrangements in place but the scheme could not start until the ACCC makes it final determination.

In its submission, the ABA seeks authorisation to give effect to an implementation agreement between the parties and also seeks authorisation on behalf of any future parties.

The ACCC's job is to assess whether any detriment caused by anti-competitive behaviour is outweighed by public benefit.

The ACCC is unlikely to get submissions from parties claiming detriment but it may get submissions from consumer groups arguing that the arrangement should go further.

The scheme comes out of the work of the ATM Taskforce, which is a Reserve Bank and Treasury group set up by the Government in response to concerns about high ATM costs in remote communities.

Under the scheme, which is planned to run for five years, card-issuing banks will pay subsidies to the ATM suppliers and assist with the cost of reconfiguring the machines.