02 Sep 2009
NAB, Cuscal ATM network gets ACCC approval, afr.comNational Australia Bank and credit union automatic teller machine administrator Cuscal have joined their ATM networks after receiving interim approval from the competition regulator.
NAB and Cuscal, the developer of the rediATM sub-network said they had combined their ATM networks to create Australia's second- biggest but most geographically dispersed ATM network.
The network will bring together NAB's 1700 ATMs with Cuscal's 1440 ATMs at more than 2900 locations.
It will be second only in size to Commonwealth Bank (CBA) and BankWest's combined network of about 4000 ATMs at 2800 locations.
The Westpac, St George and BankSA's combined network has 2800 ATMs and ANZ Banking Group's network has about 2500 ATMs.
The combined network went live after the two organisations agreed to a non-cash deal in July, subject to approval from the Australian Competition and Consumer Commission (ACCC).
On August 21, the ACCC gave interim authorisation to an agreement between members of the rediATM branded sub-network of 1440 ATMs not to charge each other's cardholders a fee for transactions made at members ATMs.
The interim authorisation also allowed rediATM network members to coordinate the deployment of any new ATMs.
NAB was proposing to join the rediATM sub-network, the ACCC noted.
By granting interim approval, NAB and Cuscal can join their networks before the ACCC considering the substantive merits of the application, the ACCC said.
"It doesn't necessarily mean they will get final approval", an ACCC spokeswoman said.
NAB and Cuscal said full ACCC approval was expected later this year.
NAB's move to expand its ATM network followed criticism over the size of its network when the direct charge fee regime was introduced on March 3 by the Reserve Bank of Australia.
Under the regime, the ATM owner can charge the customer directly for the use of the machine but must disclose the fee before the transaction.
CBA, Westpac and ANZ now charge customers of their institutions $2 to use their ATM.
NAB charges non-NAB customers $1.50 for a withdrawal and 50 cents for an enquiry.
NAB and rediATM customers paid $150 million in direct charge fees every year from about 190 million transactions at foreign banks' ATMs, the organisations said.
They conduct more than 5 million transactions on each other's ATMs per year generating $10 million in direct charge fees.
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