What is direct charging?
Why is direct charging being introduced?
How will direct charging impact customer fees?
Why does bankmecu charge a different fee for its own ATMs and other rediATMs?
Will the direct charge fee be included as part of the customer rewards package?
What if you wish to dispute the direct charge?
What if the transaction is declined?
Will customer be charged to obtain a balance from an ATM?
How can customer avoid the direct charge fee?
Aren’t customer worse off because bankmecu doesn’t have many ATMs?
How will customer find out about direct charging and the rediATM network?
Where is my closest bankmecu rediATM?
What is direct charging?
Direct charging will be a charge determined by the ATM owner for a successful transaction conducted at that particular ATM. Currently ATM owners and institutions negotiate fees and charge each other (interchange fees). Interchange fees are no longer permitted. ATM owners must direct charge the customer.
The ATM owner can charge what they like and who they like. They can vary the charge depending on cardholder, locality or time of day if they choose.
Where the ATM owner and the card issuer are the same institution, no direct charge will usually apply as an institution chooses not to direct charge its own customers. So the charge will only usually apply to cardholders that do not bank with the particular ATM owner.
For example, Joe the Plumber is a bankmecu customer and uses a foreign bank ATM to withdraw $200. The foreign bank ATM owner imposes a direct charge of $2 at that ATM on transactions, so $202 is withdrawn from Joe’s account when he receives $200 out of the ATM. The ATM owner keeps the $2.
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Why is direct charging being introduced?
Seeking to improve competition in payment systems, the Reserve Bank of Australia has required abolition of interchange fees - what participants charge each other for their customers using each other’s ATMs. To ensure pricing transparency and improve competition, financial institutions will have to directly charge ATM users instead of each other. Direct charging will be introduced from March 2009.
Credit Unions have RBA approval to combine their ATMs into one network. This enables customers of all participating Credit Unions not to be direct charged for using another credit union’s ATM.
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How will direct charging impact customer fees?
bankmecu will no longer apply any transaction fee for customer withdrawals using non-rediATMs. Customer will pay the direct charge. Regular transaction fees subject to our Customer Reward will continue to apply for rediATM transactions including bankmecu ATMs. Customer using other ATMs will be directly charged by the ATM owner.
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Why does bankmecu charge a different fee for its own ATMs and other rediATMs?
bankmecu wants to offer customer additional incentive to use our own ATMs as the more they do the less it costs us so we can pass on the benefit. Customers will be able to distinguish bankmecu rediATMs from other rediATMs as they will either be in our service centres or if elsewhere, they’ll contain some bankmecu identifier.
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Will the direct charge fee be included as part of the customer rewards package?
No. The fee is charged directly by the ATM owner and debited to the customer’s account on the same day.
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What if you wish to dispute the direct charge?
You will be advised of the fee at the ATM before you conduct the withdrawal. You will have an opportunity to stop the transaction. If there is further dispute you will need to take it up with the ATM owner.
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What if the transaction is declined?
Customer will no longer be charged for declined transactions. One of the RBA’s rules for direct charging is that the current interchange fees charged for declined transactions are no longer permitted. No cost for bankmecu; no declined transaction fee for customer.
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Will customers be charged to obtain a balance from an ATM?
Customers may be charged for balance enquiries at non-rediATMs but not at a rediATM.
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How can customer avoid the direct charge fee?
Easy! Use a bankmecu rediATM or any other rediATM. Even better, get cash with EFTPOS as it’s a cheaper way to withdraw (only $0.60). And maximise your Customer Reward by supporting bankmecu with more of your banking.
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Aren’t customers worse off because credit unions don’t have many ATMs?
No. rediATM has an ATM network currently 3,400 strong. Credit Unions are looking to invest in building the network over the next 5 years making it one of the biggest in the country.
This is why the rediATM network has been rebranded to create a stronger presence in the market place so all bankmecucustomers can withdraw cash without a direct charge.
There’ll be some nifty tools launched to ensure customers can find a rediATM. This includes a rediATM website with an ATM locator and SMS functionality. The website will be optimised for mobile phones and PDAs too so no matter where customers are they can find the nearest rediATM.
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How will s find out about direct charging and the rediATM network?
Credit Unions have developed materials to support promoting direct charging and rediATMs to customers, including a new website with a rediATM locator. The new site, launched 1 Nov, is www.rediatm.com.au
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Where is my closest bankmecu rediATM?
Find your closet rediATM via SMS or our rediATM locator.
Click here to download a list of bankmecu RediATM locations
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