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DirectCash lifts ATM fees

11 June 2013 4:45PM
DC Payments Australia will lift the user fee at most of its ATMs to A$2.80, from $2.50, from the beginning of July, making the independent automatic teller machine network the most expensive in the country.DC Payments is owned by DirectCash, a Canadian bank, which took over the former Customers Limited ATM business in mid-2012.DC Payments recently wrote to many of its merchants offering them "the opportunity to increase the rebate they receive."The firm said it planned to increase the user charge by 30 cents, to $2.80, from next month. It will give 15 cents of this increase to the merchant.Banks that make use of DC Payments-owned but bank branded ATMs say they will not lift their customer fees. This includes Bank of Queensland and Citibank.The number of cash withdrawals from automatic teller machines has waned as consumers increasingly avoid the use of ATMs, which often involves paying fees.Reserve Bank of Australia data shows there were 27 million withdrawals at an ATM that charged a user fee in March 2013 - down four per cent over a yearThe number of own-ATM withdrawals fell four per cent in February. And ATM usage has declined in eight of the last 12 months.Two dollars remains the most common price point for ATM fees.In April, in an investor presentation, DirectCash described the Australian market as "less mature… where transactions and gross profits per ATM are significantly greater than in the mature Canadian ATM market."

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