Banking and finance
Banking technology
Getting used to banking technology
Technological change is not always welcomed by everyone. Some people get anxious and confused about using some of the technologies connected to banks, such as Automatic Teller Machines (ATMs) and Electronic Funds Transfer at Point of Sale (EFTPOS). The following sections provide tips on becoming more familiar with this style of banking.
Top of pageBanking technology education forums
Some banks run education forums in the use of ATMs and EFTPOS. The forums explain the various banking functions available through electronic services and provide customers with ‘hands on’ experience with portable machines. Make inquiries at your local bank and if it doesn't offer these forums, ask it to consider doing so.
Industry education programs
The industry has taken a number of steps to help ensure that all customers benefit from electronic banking. The pilot program, ‘Self Service Banking and Older Australians’, was established in 1999, the International Year of Older Persons, after community groups and banks agreed with the Government that people over 50 wanted to know more about technology associated with electronic banking.
Seminars were held in all States and Territories during 1999 as part of a national program, which attracted funding from the Federal Government. This work continues as community groups continue to contact the Australian Bankers Association (ABA), which helps organise speakers from member banks to deliver the self-service banking seminars.
If you would like to book a speaker from member banks to deliver the self-service banking seminars. If you would like to book a speaker for your community group please
call (02) 8298 0417.
Automatic Teller Machines (ATMs)
ATMs take a little getting used to. However, they do provide convenience and independence in accessing banking services, in that you are not limited by your bank's opening hours for making a cash withdrawal.
Most financial institutions still offer counter service for the full range of banking services. However, customers are encouraged by banks and credit unions to use ATMs, particularly for transactions like withdrawals, because they provide 24-hour banking convenience for customers. In addition, ATMs save banks and credit unions money on staff and administration costs. However, you must be wary, because both counter services and ATMs may attract fees. You need to check with your financial institution about their fees and charges.
Physical inability to use ATMs
If people are visually impaired, wheelchair bound, or have any other disability which makes use of ATMs impossible, many banks will waive fees on counter service.
Difficulty remembering PIN numbers
One of the issues raised by older people in relation to using ATMs is difficulty in remembering their PIN number. This means they may be tempted to write it down, which in turn creates a security risk.
When the bank is organising an ATM card for you, ask them if a password can be used in place of a PIN number, if you think it would be easier for you to remember. Some people find it easier to remember a word than a four digit number and ATM keypads have both numbers and letters.
Feeling unsafe while using ATMs
Fear of being robbed is the reason given by some people for their reluctance to use ATMs. These general rules should be followed for ATM safety, especially at night:
- Minimise your time at the ATM by having your card ready when you approach the machine.
- Take a look around as you approach the ATM and if there's anything suspicious, don't use the machine at that time (report any suspicions to the police).
- Once you've completed your ATM transaction, put your money away immediately and leave - it's best to count your money later.
- If you don't feel comfortable using a particular ATM, consider continuing on to another branch or using off-street ATMs in banking lobbies.
- Do remember that EFTPOS can be used to withdraw cash at many other places, like supermarkets and service stations.
- If you simply want to check your account balance or transfer funds between accounts, phone banking or internet can be used instead of an ATM.
Direct debiting
For details concerning direct debiting, contact the Banking and Financial Services Ombudsman Limited (formerly the Australian Banking Industry Ombudsman).
Telephone: 1300 78 08 08.
Postal address: GPO Box 3, Melbourne VIC 3001.
Website: www.bfso.org.au
Guidelines for operation and cancellation of direct debits
The following information is an extract from guidelines issued by the Banking and Financial Services Ombudsman for operation and cancellation of direct debits.
Operation of direct debit
The operation of the account and debit authority involve several parties: the bank, the consumer, the merchant's bank. The bank has a duty to the customer not to accept a transaction or debit that has not been properly authorised.
Cancelling a direct debit
The authority may be cancelled by written notice to the bank.
To the extent that a direct debit request is authority to a bank to debit a customer’s account at the request of a third party, that authority may be cancelled by the customer either by notice to the third party and/or by notice to the bank. A bank may not refuse to accept a cancellation in writing from a customer and must notify the third party of that cancellation.
Failure to accept or act on a written notice of cancellation may cause compensation loss to the customer. In particular, a bank will not be able to recover costs such as overdrawing fees charged to an account on acceptance of further direct debit, after the customer has provided notice to the bank and will be obliged to re-credit the funds debited.
Effect of authority
If a complainant provides an automatic debit authority to a third party to take instalments from his/her account for specified periods, the authority is given by the complainant to the third party, not the bank.
If a merchant presents an authority to the bank which has not been countermanded by the customer, it is an authorisation which the bank must honour.
Claims in relation to unauthorised debits
The bank is obliged to process claims in relation to unauthorised debits.
A claim form may be completed at the bank, the third party’s sponsor financial institution is notified and the third party must provide proof within 7 days. A bank will be in breach of the rules and its obligations to its customer if it refuses to process a claim in respect of an unauthorised debit on behalf of its customer. Refusal to do so may cause further compensational loss, including loss of interest while the debit remains to the account and stress and inconvenience.
Rounding totals
In August 1990 the Commonwealth Treasurer announced that one and two cent coins would cease to be issued after October 1990.
After the disappearance of one and two cent coins goods and services could still be priced in multiples of one cent.
Transactions involving cheques, credit cards, electronic funds transfer at point of sale (EFTPOS) etc continue to be made to the exact cent.
Where cash is paid it is necessary to round the FINAL payment. Rounding takes place only on totals of bills or accounts not on individual items.
Invoices should be issued to customers employing the cent as the basic charging unit.
Examples of rounding
$2.51 will be rounded down to $2.50
$2.52 will be rounded down to $2.50
$2.53 will be rounded up to $2.55
$2.54 will be rounded up to $2.55
$2.56 will be rounded down to $2.55
$2.57 will be rounded down to $2.55
$2.58 will be rounded up to $2.60
$2.59 will be rounded up to $2.60
Further information
For further information regarding rounding contact the Australian Competition & Consumer Commission (ACCC):
Telephone: 1300 302 502
Postal address: GPO Box 3648, Sydney NSW 1044
Website: www.accc.gov.au
Bank exception fees
What are exception fees?
Exception fees are disclosed in the account terms and conditions and may be charged when there are insufficient available funds to cover a transaction, resulting in a dishonour or approval to overdraw, credit card payments are late, or credit card limits are exceeded.
Do banks have to disclose these fees?
The disclosure of fees by Australian banks is mandated by Government legislation. The Australian Bankers Association (ABA) has had discussions with the Australian Securities and Investments Commission (ASIC) regarding exception fees. ASIC has informed ABA that it welcomes the industry’s initiatives aimed at ensuring an effective level of disclosure to customers about exception fees.
The transparency of fees is prescribed under the banking industry’s own Code of Banking Practice. The ABA believes it is beneficial to enhance community understanding about exception fees, and fully supports competitive fee offerings by individual member banks.
Can exception fees be waived?
Some banks offer selected accounts for eligible customers where exception fees are waived or capped. Others offer accounts designed to virtually curtail the eventuality of exception fees.
The ABA provides a list of various accounts from their member banks which have low exception fees. This list can be viewed on the ABA website.
Avoiding exception fees
Exception fees are avoidable. In most cases, they can be easily avoided by careful management of your finances. It is important to check your account balances before making payments, and review your banking habits to minimise opportunities where exception fees might be charged. Some other tips to avoid exception fees are:
-
choose the right account that suits your transaction and saving needs. For example, if you regularly exceed your account balance, choose one that has an overdraft facility
-
consolidate your accounts to help you keep track of your funds more easily
-
create a budget and plan your outgoing spending so that your financial commitments match your incoming funds
-
keep a small balance in your account to cover unexpected withdrawals
For more tips on how to avoid exception fees visit the ABA website
When things go wrong
The organisation to contact in the event of a dispute will depend on the type of financial institution and the nature of the dispute.
If the organisations listed below are unable to assist, please contact the Office of Fair Trading on 13 32 20 to discuss other options that may be available.
Resolving disputes with credit unions
The Credit Union Dispute Resolution Centre (CUDRC) provides a dispute resolutions process for participating credit unions. For further details and to check if your credit union participates contact CUDRC:
Telephone: 1300 78 08 08
Postal address: GPO Box 3, Melbourne VIC 3001
Website: www.cudrc.com.au
Resolving disputes with banks
The Banking and Financial Services Ombudsman Limited (BFSO) deals with a range of disputes regarding services provided by banks. For further details contact the BFSO:
Telephone: 1300 78 08 08
Postal address: GPO Box 3, Melbourne VIC 3001
Website: www.bfso.org.au
Resolving disputes with building societies
The Australian Association of Permanent Building Societies (AAoPBS Inc) represents most Permanent Building Societies and will refer unresolved complaints to a senior executive within the Society for review and reconsideration.
Telephone: 02 9221 2711
Fax: 02 9221 0413
Postal address: GPO Box 4358 Sydney NSW 2001
Website: www.aapbs.com.au
Email: info@aapbs.com.au