The NAB ATM network has ventured into a joint partnership with credit union automatic teller machine administrator Cuscal.
This is after receiving interim approval from the competition watchdog. Cuscal who develops the rediATM sub-network and NAB stated today that their aim was to build Australia’s second biggest but most geographically dispersed ATM network.
The joint venture will combine NAB’s 1700 ATMs with Cuscal’s 1440 ATMs at more than 2900 locations nationwide giving consumers better access to cash funds.
- The biggest ATM network in the country is the Commonwealth Bank’s (CBA) and Bankwest’s combined network of about 4000 ATMs at 2800 locations.
- The Westpac, St George and BankSA’s combined network has 2800 ATMs, and ANZ Banking Group’s network has around 2500 ATMs.
After agreeing on a non-cash deal in July the way was paved to go live after getting approval from the Australian Competition and Consumer Commission (ACCC).
The NAB ATM network, a giant step forward:
The ACCC gave interim authorisation on August 21st to an agreement between members of the rediATM branded sub network of 1440 ATMs not to charge each other’s cardholders a fee for transactions made at members’ ATMs.
The authorisation also allowed members of the rediATM network to coordinate the deployment of any new ATMs.
A spokeswoman for the ACCC said earlier this year when NAB was considering the JV: “It doesn’t necessarily mean they will get final approval.”
Both partners said they expected the full approval of the ACCC later this year. NAB came under some criticism over its ATM network when the direct charge fee regime was introduced on March 3 by the Reserve Bank of Australia.
Under the new regime, an ATM owner is allowed to charge the customer directly for the use of the machine. But is must disclose the fee prior to the transaction.
Customers of CBA, Westpac and ANZ are now charged $2 each time they use their ATMs. Non-NAB customers can expect to pay $1.50 for a withdrawal and 50 cents for an enquiry when using the NAB ATM network. A total of $150 million are paid in direct charge fees every year by NAB’s and rediATM customers from around 190 million transactions made at foreign banks’ ATMs. They conduct over five million transactions on each other’s ATMs per year generating $10 million in direct charge fees.
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