ATMs: Can't Have Your Cake and Eat It too
Written on the 10 July 2018
Now that the dust has settled after the celebrations en masse following the Big 4 Banks decision to remove ATM fees, it's time to sit back and reflect on what was actually achieved. Most people have not yet noticed the blank wall where there was once a Big 4 ATM. Unlike the announcement of free transactions for all, there has been no fanfare, full-page newspaper ads or announcements to advise that their ATMs are slowing disappearing.
While in the city and suburbs we may not notice it so much as there are other ATMs around, ask our regional counterparts and they'll tell you finding an ATM (or in fact a bank branch) is becoming a challenge.
Despite the media beat up and a push towards digital payments, there are plenty of people who still want to use cash. People who want to buy a burger and a raffle ticket at their kid's soccer club. People who want to have a garage sale. People who want to buy fresh, local produce at their Sunday market. And simply people who budget their cash carefully each week. All of these people want to use cash when and where it is convenient for them.
The banks have been removing their ATMs because without charging a transaction fee, providing an ATM actually costs them money. A lot of money! They have used ATMs as a form of promotion for their customers as they provide a "convenience". The truth is they are just flogging their brand as they want all your business - your credit card, home loan, insurance, super and financial services. They could previously afford to give away ATM fees to their clients as they feed off their other services and charges for other non-bank users, but now that they offer it free, the cost of providing this service is becoming cost prohibitive.
Aside from the initial cost of purchasing the ATM, someone has to physically stock the machine with cash and receipt paper, there are insurances including public liability, the machine has to be maintained and serviced, rent paid plus the machines need to be kept up to date with the latest anti-fraud software and hardware. This all comes at a cost.
The good news is that ATM2GO is only too happy to fill the void created by the Big 4 by providing ATMs at events and retail ATMs in local shops and shopping centres. Retail ATMs eliminate EFTPOS costs, encourages more foot traffic and could potentially provide another income stream via rebates. And if you are personally sick of paying ATM fees then find a provider that offers fee-free transactions at ALL ATMs! They are out there.
To find out more about ATM2GO and how we can help your local area with an ATM click here