The Australian Competition and Consumer Commission proposes to authorise an agreement between Suncorp-Metway and Bendigo and Adelaide Bank not to charge each others’ cardholders a fee for transactions at ATMs they own.
Under reforms to Australia's ATM system introduced in March last year customers are now charged directly by ATM operators for transactions. Most banks do not charge their own cardholders for transactions.
Arrangements such as those proposed by Suncorp and Bendigo Bank provide customers of financial institutions with a smaller ATM footprint with direct fee free transactions at a wider range of ATMs.
"The ACCC considers the agreement between Suncorp and Bendigo Bank not to charge each others' cardholders for ATM transactions will be pro-competitive, assisting to ensure that they are not at a competitive disadvantage to institutions with larger ATM networks," ACCC chairman Graeme Samuel said.
The arrangements have been operating under an interim authorisation granted by the ACCC shortly after the application for authorisation was lodged.
The ACCC has previously authorised separate agreements between members of the rediATM network and members of the Feesmart network not to charge each others’ cardholders for transactions undertaken at any ATM within their network.
The ACCC is now inviting comments on the draft determination. The ACCC's draft determination and information about making a submission will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter.
Parties wishing to make submissions should do so by 19 August 2010.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.