Sunday 18 January 2009

Life gets harder !

When the banks began closing branches several decades ago many people expected that they would increase the number of ATM's to compensate. They didn't ! Instead private firms began to install independent money machines in petrol stations, corner stores, clubs and pubs.

It has always been more expensive to use a privately owned ATM than the machine provided by your own bank - and when the banks combine to allow their machines to service other bank's customers higher charges apply - but from March all bets are off !

New laws come into force on March 1 that allow the owners of private ATM's to charge whatever they like - and to vary charges according to the time of day or the amount seeking to be withdrawn.

Opportunistic owners will no doubt consider what competition exists near their machines and how far to the nearest bank owned ATM. The charge may vary widely to accommodate opportunity. How desperate are late night customers seeking urgent cash ? How fortunate to own the only ATM in a small town or a distant suburb.

Then there is the non-cash use of ATM's. Someone wants to know their account balance. Another person wants to pay a credit card debt. These could become very expensive transactions once the first of March ticks over.

At this stage there is a remedy - and that is EFTPOS. Dodge the ATM and instead use the late opening branches of Woolworths and Coles - who at this stage welcome people using their services to withdraw cash.

But - we are told that hard times are ahead in all sections of commerce. The world is staring down recession - and that " D " word is sending shivers down many people's spines.

The " easy money " times are over. The day may be coming when having a wad of money in your wallet is the only way to dodge exorbitant bank and ATM fees. How long before even EFTPOS becomes an opportunity to increase merchant's profits by making a charge for dispensing cash ?

The public are well advised to take the time to read the small print advising of the fee regime applicable to ATM's before they start pressing buttons - before they becomes victims of " the Ides of March ! "

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