Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Non-Bank ATM Fees Likely to Soar, Industry Warns

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Non-Bank ATM Fees Likely to Soar, Industry Warns

Article excerpt

THE American owners of Australia's largest network of ATMs have been reaping $13,500 of fee revenue per machine annually, it can be revealed.

And if you thought competitive forces would rein that in now big banks are making their machines free, think again.

Industry insiders say fees for withdrawing cash from non-bank ATMs at pubs and convenience stores will go up, not down.

Among the reasons is that operators know they can get away with it because users won't bother seeking out a free bank-owned ATM.

Cardtronics, which runs 10,200 ATMs in Australia -- three times what CBA owns -- generated $35 million from fees in the three months to the end of June.

That equates to $138million annually -- more than $13,500 per machine. The typical cost for anyone withdrawing cash from one of its ATMs is at least $2.75.

The worth of Nasdaq- listed Cardtronics fell by 20% or nearly $400 million this week after management said the moves by CBA, NAB, ANZ and Westpac to make their ATMs free for all users could have an "adverse impact" on revenues in the "near term". …

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