The Commonwealth Bank will scrap ATM withdrawal fees from all 3,400 cash machines across Australia, in a move that may signal the end of withdrawal fees for other banks across the country.
Bank customers in Australia are often charged a withdrawal fee when they use another bank's cash machine to withdraw money. The fees are usually between $2 and $2.50, and are a source of frustration for many Australian consumers.
But on Sunday the bank announced it was removing ATM fees for withdrawals made by non-customers.
“Australians have complained for some time about being charged fees for using another bank’s ATM,” said Commonwealth Bank group executive Matt Comyn in a statement.
“We have been listening to consumer groups and our customers and understand that there’s a need to make changes that benefit all Australians, no matter who they bank with. This is one of the steps we’re taking to make that happen.”
But Australians will still need to pay fees if they use other bank's cash machines.
Today Commonwealth Bank has announced it will stop charging ATM fees to non-customers. Do you think other banks s… https://t.co/Ja7tY0O1Ia
Labor senator Sam Dastyari welcomed the Commonwealth Bank's move, and called for other banks across Australia to cut their cash withdrawal fees.
Other big banks - @Westpac, @ANZ_AU & @NAB should also cancel fees TODAY. Government should demand it. @CommBank a… https://t.co/BxrNFHfHwS
The Commonwealth Bank's decision to cut cash machine fees follows several months of serious allegations being levelled against the bank.
A federal court action was launched in August by the The Australian Transaction Reports and Analysis Centre (AUSTRAC) alleging the bank has breached Australia's anti-money laundering laws.
The bank is also facing a separate inquiry by the Australian Securities Investments Commission, and another probe by the Australian Prudential Regulation Agency.
Greens senator Peter Whish-Wilson linked the announcement today to the prospect of the bank facing further scrutiny.
Pressure of an impending #banksRC or Parliamentary Commission of Inquiry have pushed Commbank to scrap some ATM fees https://t.co/sUCc9FA6oK