Submission to the Financial System Inquiry – August 2015 List of tables

Senate Economics References Committee

Chapters

Table 1: Credit Card Interchange Fees

Table 2: Number of ATMs – Major Networks

Table 3: Survey of ATM Owners/Operators

Table 4: Direct Charges

Table 5: International Comparison

Table 1: Credit Card Interchange Fees(a)
Excluding GST; as at February 2015
Category
  		Interchange Fee Per cent
  MasterCard Visa
Consumer electronic 0.30 0.30
Consumer standard 0.30 0.30
Consumer premium/platinum 0.95 0.93
Super premium 1.59 –
Visa Rewards – 1.50 or 1.70(b)
Visa Signature – 1.80
Consumer elite/High net worth 2.00 1.80 or 2.00(b)
Commercial 1.00 0.97 or 1.20(c)
Commercial premium 1.30 or 1.35(d) 1.30 or 1.80(e)
Strategic merchant 0.23 or 0.29 0.20 to 0.40
Government/utility 0.29 0.30
Charity 0.00 0.00
Petrol/service station 0.29 0.30
Education 0.29 0.30
Supermarket – 0.30
Insurance – 0.30
Transit – 0.30
Recurring payment 0.29 0.30
Contactless(f) 0.29 –
Quick Payment Service 0.40 –
SecureCode merchant 0.30 –
SecureCode full 0.30 –

(a) Fees are paid by the acquirer to the issuer
(b) The higher rate applies if an account is deemed qualified (if spending on that account exceeds a card-specific threshold)
(c) Visa has three types of non-premium commercial rates; the ‘business’ category attracts a fee of 0.97 per cent while the ‘corporate’ and ‘purchasing’ categories attract a fee of 1.20 per cent
(d) 1.30 per cent for the ‘commercial corporate executive’ category and 1.35 per cent for the ‘commercial business executive’ category
(e) 1.30 per cent for the ‘commercial premium’ category and 1.80 per cent for the ‘business signature’ category
(f) MasterCard PayPass transactions equal to or less than $60, excluding commercial credit cards

Sources: MasterCard; Visa
Table 2: Number of ATMs – Major Networks(a)
As at June/July 2015
Network Number
DC Payments 7,251
Cashcard 4,691
Commonwealth Bank & Bankwest 3,822
RediATM (including NAB) 3,089
Westpac & St. George 3,055
ANZ 2,606
CashConnect 1,857
Next Payments 1,080
Bendigo Bank 868
Suncorp 681

(a) Some figures include ATMs carrying financial institutions' branding, but owned/operated by an independent deployer. These may be recorded against both the owner and the branding institution

Source: ATM Deployers; Banks
Table 3: Survey of ATM Owners/Operators(a)
July 2015
  Number of ATMs Number of Withdrawals
2014/15 		Number of Balance Enquiries
2014/15 		Average Direct Charge
  (millions) (millions) ($)
        Withdrawals Balance Enquiries
        2010(b) 2015(c) 2010(b) 2015(c)
Financial institutions 13,876 514.4 139.1 1.94 2.02 1.68 2.01
Per cent of total 45 76 90        
Independent deployers 17,295 164.7 15.3 2.15 2.57 1.96 2.26
Per cent of total 55 24 10        
Total 31,171 679.1 154.4 2.04 2.33 1.82 2.15

(a) Some figures include ATMs that carry financial institutions' branding, but are owned/operated by an independent deployer. A small number of ATMs from financial institutions operating under these arrangements are recorded in data for independent deployers
(b) Average direct charges for 2010 are from data collected in December for the 2010 ATM Taskforce Report on Transparency and Competition
(c) Average direct charges for 2015 as at July, collected as part of the RBA's most recent survey

Sources: ATM Deployers; Banks
Table 4: Direct Charges
Per cent of ATMs
  Withdrawals Balance Enquiries
  December
2010 		July
2015 		December
2010 		July
2015
$1.00 or less 0.3 0.3 14.5 3.2
$1.01 to $1.50 6.0 <0.1 0.4 0.1
$1.51 to $2.00 77.1 47.3 83.5 64.2
$2.01 to $2.50 16.3 32.9 1.5 26.0
$2.51 to $3.00 0.3 19.1 0.1 6.5
More than $3.00 <0.1 0.3 0 0.1

Sources: ATM Deployers; Banks
Table 5: International Comparison
  Typical foreign fee
per withdrawal 		Typical direct charge Comment
Brazil Average USD0.52 (A$0.70) NA Financial institutions are required to offer a number of charge-free services (e.g. four free cash withdrawals) to their customers every month. Once this threshold is reached, a financial institution may charge its customers for ATM withdrawals, whether they are made on its own network or on that of another financial institution.
Canada CAD0.55–CAD2.00 (A$0.57–A$2.09) CAD1–CAD5
(A$1.04–A$5.22) 		Some financial institutions may charge for ‘own’ withdrawals after a relatively high transaction threshold is reached (around 25 per month). For ‘foreign’ withdrawals, both a foreign fee and a direct charge may be applied. Some personal banking account packages offer fee-free transactions when using a ‘foreign’ ATM.
France Typically 1€ (A$1.51) NA Some banks charge their customers a fee after a threshold of ‘foreign’ ATM withdrawals in the month is reached. The level of the fee may also depend on the type of card being used (e.g. premium card).
Hong Kong NA HKD15–HKD25
(A$2.62–A$4.37) 		There are two main ATM networks in Hong Kong (ETC and JETCO). Customers of one network are charged a fee if they withdraw money from an ATM belonging to the other network.
India Maximum INR20 (A$0.42) NA Financial institutions must offer customers a number of fee-free cash withdrawals every month. Once this threshold is reached, banks can charge for both ‘own’ and ‘foreign’ ATM withdrawals, up to a regulated price cap.
Italy Average 2€ (A$3.02) NA Fees depend on the customer's account package.
Mexico NA Average USD1.50 (A$2.03) A direct charge levied by an ATM owner is the only permitted fee.
United States Average USD1.42 (A$1.92) Average USD2.10 (A$2.84) In 2012, around 96 per cent of financial institutions imposed a direct charge on their ATMs. In addition, around 55 per cent of financial institutions charged a fee to their customers for making ‘foreign’ ATM withdrawals.

Sources: Central Banks; RBA