Direct Charging- What is it?

I have looked through both your websites but don’t seem to be able to find any information on this new direct charge thing? Can you please explain and how will it impact my partner who is a member?
Thanks,
J. Block

From the 3 March 2009 card holders will be charged a fee up front before proceeding with an ATM transaction when using another financial institutions ATM. This change is called Direct Charging and will permit the ATM owner to directly charge the cardholder for their withdrawal at the same time of the transaction.

This fee will vary by ATM owner and site location and will be displayed on the screen before the member continues with the transaction, so you have the opportunity to cancel the transaction without being charged.This change has been brought about by the RBA’s involvement through the Australian Payments Clearing Association (APCA) to make interchange fees charge between ATM owners and cardholder Financial Institutions more transparent and ultimately create more competition that will eventually see users paying less.

What can you do to reduce fees?
We are currently reviewing our fee program leading up to this change but in the meantime here are a few ways members can avoid unnecessary fees;
· Use a rediATM- members will not incur a ‘direct charge’ cost for Companion members and the fee currently charged is less than the other FI’s ATM fee. Use the rediATM locator http://www.rediatm.com.au/ to find an ATM near you
· Ensure you utilise the online and phone banking services to pay bills electronically
· When using EFTPOS, withdraw cash at the same time so it is within the same transaction and reducing multiple fees being charged
· Utilise the Visa Debit Card- just make sure you select ‘credit’ where you can still use your PIN and not be charged a Companion fee

More information is available on the Direct Charging and ATM Reforms through the below links

http://www.rba.gov.au/PaymentsSystem/Reforms/ATMFeeReforms/index.html
http://www.apca.com.au/afr/whatschanging.html

If you require further please contact us,

M.Bramley
Executive Manager Member Services

January 23rd, 2009 | Leave a Comment »