There has always been some debate that using cash to pay rent is free of “fees”. I have always said “not necessarily so”, fees can be incurred along the way - account keeping fees, transaction fees, ATM fees, and fees if you fall below a certain account balance. As of Monday 2 March, reforms to the banking code of conduct mean that ATM fees now need to be disclosed by the operators of the ATM before cash is dispensed. Consumers can then have the choice of whether to proceed with the transaction or not.

If consumers use an ATM which belongs to another financial institution or company and is not in a networked arrangement with their bank, then the customer WILL pay a fee charged directly by the ATM operator. This fee can be around $2 or more per transaction.

David Bell, Chief Executive of the ABA said on Monday “It is very important under this new regime that bank customers know how to locate an ATM that won’t charge them directly for transactions.” “If you do use an ATM which does not belong to your bank or is not in a networked arrangement, then the ATM operator must disclose on the screen the amount it will cost the customer to use the machine. If the customer decides it is too high, the customer can cancel the transaction at no cost.”

The ABA have also released the following tips for consumers to minimise fees under new ATM direct charging rules:

• Consumers should use their own banks’ ATMs or a fee-free networked ATM;
• Where possible, make your payments online or over the phone to help limit your cash withdrawals. At the same time, you can check your account balance
• If consumers want to avoid/minimise ATM operator fees, consider using EFTPOS and getting cash out with a purchase. Additional cash from supermarket purchases are popular

This is all great news for tenants who use our services, unlimited direct debit transactions each month still cost only $3.20. And they get a free Ambassador Card so they can save some money on the side. Agents get a cash free office which is great for efficiency and security.

Keep an eye out for my next post, some exciting changes to the agent/tenant websites are coming!

Have a great week!

Sam

Tags: Cash, Rent Payment, Atm