Stan: Cutting ATM fees a bad idea

[duderoo]

http://business.iafrica.com/news/180849.htm

Standard Bank has criticised FNB's proposal to eliminate Saswitch charges — fees charged when a customer uses another bank's ATM — calling them "extraodinary", the bank said on Monday.

Just like Telkom, cause they would be making less profit.

 

[Kompete]

http://business.iafrica.com/news/180849.htm
Just like Telkom, cause they would be making less profit.

This is quite a tricky one, but I would almost agree with standard bank. There is an ulterior motive to FNB and ABSA's suggestion to remove saswitch fees..."to cripple their main competition"

Think of it this way: Lets say there were 4 main players (A,B,C,D) in fixed line broadband, but the infrastructure is owned primarily by only 2 players (C,D). And lets say that one player charge another player for the use of the others network where the first player does not have coverage, but then recovers this fee (lets call it 'saswitch' fee) back from the consumer.

And now lets say the gov squeezes all players to lower fees, and players C,D suggest.."oh lets get rid of saswitch fees, that way the consumer will save some money". From the outside this appears honourable: "lets all take a knock and help the consumer", but what they are really saying is "lets ignore all other fees and focus on the competitive weaknesses of A,B...that way...we help the consumer, satisfy gov and kill our competition in one easy swoop "

Now you end up with only two players and you're back to square 1.

 

[Koos Custodiet]

Are you saying that the banks will continue to charge one another money for the use of the machines (i.e. Standard would have to pay FNB if I drew money from my Standard account at an FNB machine) but the user won't have to pay it?

 

[ic]

In its submission to the Competition Commission, Standard Bank said it would lose out should the fees be scrapped, as it has fewer ATMs available than the other banks, Business Day reported.

In the first place boohoo check the tears in my eyes STD-bank, I feel so sorry for you - lumpy custard & all...not!!!

Secondly, whose fault is it other than STD-bank's own fault that it has fewer ATMs than ABSA, FNB and Nedbank? - yes that's correct it is STD-bank's own fault for not bothering to invest money into more ATMs!!!

Lastly, if SASWITCH-ATM-transaction fees were dropped between banks, then STD-bank customers would have many more ATMs to use at a reasonable cost [ATMs provided by ABSA & FNB & Nedbank], or am I missing something...?

 

[supersunbird]

I couldn't care less about saswitch fees, debit card payments should be free, for the customer and the business...

 

[|tera|]

I could care for saswitch fees, I'm a Stan user, although I like the anti Stan comments today Nice one folks

 

[Albereth]

Standard Bank are trying to get more people to use cheques and are putting measures in place to ensure less cheque fraud - a service that they will 'sell' to the other banks.

Not because they think cheques are a worthy instrument - but because they make more money on a cheque transaction.

 

[supersunbird]

You cant stop cheque fraud...

 

[ic]

Standard Bank are trying to get more people to use cheques...

Source?

You cant stop cheque fraud...

Are you sure? - what if banks stopped issuing cheques...

 

[supersunbird]

what if banks stopped issuing cheques...

LOL, you damn lateral thinkers...

 

[kokzn]

I totally agree with scrapping of saswitch fees, i don't really care who will suffer among the Big4 banks, so long as customer across all Big4 will benefit and save lots of money...

R20 for withdrawing cash at a wrong bank? that's a pain in the a$$, what if i only want to withdraw R20?

 

[Kalvaer]

R20 for withdrawing cash at a wrong bank? that's a pain in the a$$, what if i only want to withdraw R20?

I so agree.. I cant clearly remember the drive by banks to force us all to use ATMs instead of doing banking inside a bank but charging us R20.00 everytime you did a transaction inside a bank. The reasoning was due to overheads required by staff and paper work when doing it inside the bank

Now that 90% of us have all but switched over to doing everything over the internet and via ATM.. they reverse the payments. I'm a STD bank customer and while I am a very happy customer with them, The ATM fees drive me insane, I was charged less while drawing money overseas than I am in my own country

 

[surface]

http://business.iafrica.com/news/180849.htm

Lastly, if SASWITCH-ATM-transaction fees were dropped between banks, then STD-bank customers would have many more ATMs to use at a reasonable cost [ATMs provided by ABSA & FNB & Nedbank], or am I missing something...?

Well, STD-Bank is not really thinking from customers viewpoint here. Saswitch fees are charges levied on a customer by their bank as a penalty for using another bank’s ATMs. So, because STD-Bank has fewer ATMs than other banks, STD customers are 'forced' to use other ATMs thereby earning them a nice income through penalties.

 

[Kompete]

Are you saying that the banks will continue to charge one another money for the use of the machines (i.e. Standard would have to pay FNB if I drew money from my Standard account at an FNB machine) but the user won't have to pay it?

Yes

http://business.iafrica.com/news/180849.htmIn the first place boohoo check the tears in my eyes STD-bank, I feel so sorry for you - lumpy custard & all...not!!!

Secondly, whose fault is it other than STD-bank's own fault that it has fewer ATMs than ABSA, FNB and Nedbank? - yes that's correct it is STD-bank's own fault for not bothering to invest money into more ATMs!!!

Lastly, if SASWITCH-ATM-transaction fees were dropped between banks, then STD-bank customers would have many more ATMs to use at a reasonable cost [ATMs provided by ABSA & FNB & Nedbank], or am I missing something...?

Agreed, I'm not worried about a bank loosing money (thats their own stupidity) all I'm saying is we need to give it some thought, cause surely the aim of these hearing is to:

1) lower costs to customers (saswitch fees are a fraction of total bank charges, and there are may be many other ways to reduce charges, without creating unnecessary systemic risk in the banking system - remember banks, bank the wealth of a country, and if they are in **** so are we)

2) increase competition - by removing saswitch fees not only are we making the playing field uneven for local competitors, but we are also placing further hurdles for foreign players to enter the SA retail bank space