ATMs are big business

Almost half of all ATM transactions in Australia are foreign ATM transactions incurring charges.

Analysis of the latest Reserve Bank payment data by MWE Consulting shows that 47 percent of the 867 million transactions last year were foreign ATM sessions.

MWE principal Mike Ebstein said consumers liked the convenience of being able to use the nearest machine.

Ebstein said: "Most people have always known they are paying a fee for that convenience.

"The move to direct charging will have an effect on behaviour but not to any great extent."

Ebstein said all those foreign ATM transaction fees represented a strong revenue stream.

He said it was no surprise that banks and independent ATM fleet operators had been fighting hard to sign up financial institutions without access to networks in the lead-up to the introduction of direct charging.

The number of ATMs in Australia has increased from 21,266 in 2003 to 27,081 at the end of last year.

People withdraw less at a foreign ATM - $148 compared to an average transaction of $198 at an own-bank ATM.