Coles plan for cheaper ATMs

Wes Hosking
September 24, 2012
Herald Sun

SUPERMARKET chain Coles is poised to take on the banks with its own network of cheaper ATMs.

The store is testing the units at two of its Melbourne stores, charging $1 per withdrawal.

About 30 other locations nationwide will use the ATMs if the plan takes off.

Spokesman Jon Church said feedback had been positive since the self-branded machines were installed at its Port Melbourne and Elizabeth St city stores a few weeks ago. “If customers like them, we’ll do more,” he said.

“We think the cost of withdrawing money is something people are concerned about.”

Cash out, which is fee-free, is still available with or without purchases at registers.

Australians pay an estimated $600 million in ATM fees each year, with some non-bank operators charging $2.50 for withdrawals.

Most banks charge a foreign fee of $2.

Mozo financial comparison website boss Rohan Gamble said consumers had been crying out for cheaper teller machines.

“This absolutely could be the catalyst we’ve all been waiting for. There is no way it could cost more than a few cents to process an ATM transaction.”

The move follows the entry of Coles and Woolies into the insurance and credit card market.

RBA research shows transactions at foreign ATMs have fallen from almost half of all withdrawals to 40 per cent since providers were forced to declare fees in advance.