The great ATM rip-off

dominic

Legal Expert: Telecoms
Joined
Sep 7, 2004
Messages
7,302
surprise surprise

the bank "interconnection" rate........
 

RoosTa

Expert Member
Joined
Dec 15, 2004
Messages
1,872
Standard Bank has argued that these charges are necessary to encourage customers to use its ATMs and prevent free-riding by smaller banks.
LOL! As long as they're the ones 'free-riding', it's ok.
 

Syndyre

Honorary Master
Joined
Jan 26, 2006
Messages
16,821
I think another step in the right direction would be not to charge for debit card transactions, I don't understand the logic behind credit card transactions being free and then charge for ones using a debit card. This would probably cut the amount of cash being used, which, considering all the security issues here, is only a good thing.
 

McSack

Executive Member
Joined
Feb 14, 2007
Messages
5,650
I think another step in the right direction would be not to charge for debit card transactions, I don't understand the logic behind credit card transactions being free and then charge for ones using a debit card. This would probably cut the amount of cash being used, which, considering all the security issues here, is only a good thing.

credit card transactions are charged to the vendor at between 2% and 5% of the transaction value
 

Syndyre

Honorary Master
Joined
Jan 26, 2006
Messages
16,821
credit card transactions are charged to the vendor at between 2% and 5% of the transaction value
I know, I meant direct bank charges to the consumer, AFAIK debit card transactions are charged to the merchant in a similar way anyway?
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
91,031
Most vendors have built that cost into their pricing, and therefore when you pay cash or with a debit card, they get extra profit.

Or at least thats my understanding of how the system has ended up working.
 

Gooku

Senior Member
Joined
Jan 25, 2004
Messages
817
My FNB Smart account charges only R6 for withdraw of R1000 from FNB ATM
It is 40% ~45 % cheaper than most other banks (+- R11 for R1000 withdraw)


Price competition is the solution to excessive bank charges
it is what I believe.

Ideally , the bank fee structure must be easy for consumer to compare, therefor decide the best package for own individual requirement.
 
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