The fee model for current automated teller machines (ATMs) promotes the development of a nationwide ATM network to which customers of all banks have access, said Absa executive director Louis von Zeuner on Wednesday.
He was addressing the Competition Commission panel in Pretoria on the current ATM fees model.
Von Zeuner told the commission that Absa is willing to investigate, in consultation with the South African Reserve Bank, any other fee model that would benefit its customers.
Last week, First National Bank proposed to the commission that Saswitch fees — the fees charged when a bank client uses another bank’s ATM — be eliminated.
On the commission’s proposal that carriage fees — charged between banks when a customer uses another bank’s ATM — be replaced by a direct charge to the customer using the ATM, Von Zeuner said that this could work, in theory.
”Because the existing model has worked so well for consumers, we think a cautious approach is in order before mandating a change,” he said.
He said any concerns could be met by having these fees reviewed by an independent third party on a regular basis.
If a direct charge model is to be considered, the effect on investment in ATM networks and whether direct charges might lead to increased fees at remote ATMs would need to be investigated. — Sapa