Banks ATM Charges
14 June 2007
Madam Deputy Speaker, I would like to raise my concerns about the billions of rand that banks make from the ATM costs. The technical team busy with the enquiry into bank charges has found out that more than R30 billion is made by banks from ATM fees, of which R2 billion comes from consumers using another bank`s ATM infrastructure.
Cash withdrawal fees make up the majority of bank charges for lower income earners who transact primarily in cash. Penalty charges of as high as R12,50 per transaction are charged from Mzansi cardholders, if they exceed the monthly transaction limit. Of the fees charged under the guides of saswitch costs, only a small percentage goes to it to clear the transaction. The bulk goes to the bank providing ATMs.
The ANC urges the competition commission to speedily lookup into that monopoly of ATMs by Payment Associations of South Africa - Pasa, and the transparency of the call structure of banks, in order to lower bank fees and improve competition in this sector. I thank you.
B A MNGUNI, MP
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