In a move that has left many customers reeling, the Commonwealth Bank of Australia (CBA) has announced a new fee that will hit customers' pockets whenever they withdraw their money from a branch, post office, or over the phone.

This startling development has sparked a conversation about the future of banking and the role of cash in an increasingly digital economy.

The bank's decision to close its 'Complete Access Account' and transition customers to 'Smart Access Accounts' will result in a $3 fee for each withdrawal starting 6 January.

This fee is a significant change for customers accustomed to accessing their money without additional charges.

A new fee for withdrawing cash from branches, post offices, or by phone will be introduced by Commonwealth Bank starting 6 January. Credit: Shutterstock

The shift towards a cashless banking model has been on the horizon for some time, but CBA has remained tight-lipped about its plans for its branch network.

The introduction of 'Specialist Centres' that do not handle physical cash is a clear indication of the bank's direction.

These centres focus on complex banking needs such as business and home loan products, credit facilities, and merchant services.

At the same time, customers seeking to deposit or withdraw cash are directed to use online banking or ATMs.

The bank's move towards digital banking is part of a broader trend in the industry.

CBA's subsidiary Bankwest has already announced its transition to a digital-only bank, closing branches and removing physical cash services.

Similarly, other central banks like ANZ and NAB have opened branches without over-the-counter teller services, and Macquarie Bank has fully embraced the digital-only model.

While the banks argue that physical cash transactions represent a small fraction of their business, the implications of this shift are far-reaching.

Privacy concerns, the fees associated with tap-and-go payments, and the increased risk of hacks, cyber-attacks, and online scams have been raised.

Moreover, the reliance on digital infrastructure poses its own set of challenges, including potential power outages.

The impact of these changes is unevenly distributed.

Vulnerable groups such as people with disabilities, undocumented workers, refugees, victims of abuse, and those living in remote and regional areas may find themselves disproportionately affected by the loss of cash services.

Removing over 800 ATMs from CBA's network further exacerbates the issue, limiting access to cash for those who need it.

‘Five years ago, 43 per cent of all point-of-sale transactions were cash. Today, the figure is around 15 per cent,' explained CEO Matt Comyn last year.’ he said.

‘And yet, every week, customers transact more than $18 billion through the CommBank app, an increase of 64 per cent in just two years.’

‘Many of our customers don't use cash, and these customers cross-subsidise those that do,’

Reserve Bank governor Michele Bullock has emphasised the importance of maintaining access to cash for those who rely on it.

‘There is a minority, but a significant minority, of people who still rely heavily on cash and want to use cash,’ she explained.

‘The government is committed, and we are committed as well, to trying to maintain access to cash for people who want to use it,’

‘This is not just a problem in Australia, it's a problem around the world as cash use declines for transactions,’

‘You've got all these fixed costs of maintaining a cash distribution system, and with fewer cash transactions, that means the cost per transaction just keeps going up and up - it's getting uneconomical.’

Key Takeaways

• Commonwealth Bank has introduced a new fee for withdrawing cash from branches, post offices, or by phone, starting 6 January.
• Customers with a 'Complete Access Account' will be transitioned to 'Smart Access Accounts', which include the newly introduced $3 withdrawal fee.
• The move comes as Commonwealth Bank reduces its physical cash services, including closing branches and removing ATMs while encouraging digital banking.
• Concerns about the transition to a digital-only banking system have been raised, including the impact on vulnerable populations and the potential increase in cyber threats.

Have you been affected by the new fee or the shift towards cashless banking? What are your concerns or experiences with digital banking? Share your stories in the comments below.

 

[Greg350]

Living in Laurieton, mid nth coast, NSW, where the Westpac bank was, there is now a hole in the wall which accepts all cards for withdrawal for no fees. It's not Westpac owned.
This creates an interesting thought for anyone who banks with the Com., in our district.
I wonder if any Com bank customers use this facility to withdraw cash will be charged the fee ?
I suppose only time will tell.

We had a credit union who have changed their criteria/status & have formed as the Regional Australia Bank where we do all of our banking.

Just hope they don't change their ways.

NOVEZAR.

The ATM you're talking about is owned by Precinct, a company owned by the cash transport company Prosegur Australia.

The ATM's ARE free to use, I assume the banks all pay an amount each to have this service available.

 

[Greg350]

And in all the guff expounded by the bank's exec on the cretiniser in explanation of the gouging, not once did I hear "sorry", or "we'll reconsider" or anything like that. Instead, the attitude seemed to be "Up yours, Jack."
It's called "service".

It is a service and if you want cash over the counter you pay for it. Why should all the Bank's customers have to pay for a service only a few use.

 

[RobbyNotTheRobot]

Noter that about half the executives of Commonwealth Bank are women. So much for women being more caring etc etc.
I agree with the comment about vote with your feet - take our meagre savings to Bendigo Bank

In my experience, woman in middle to high management positions adapt a male attitude just to survive a testosterone environment or just jump into bed with them and it's business as usual.

 

[Greg350]

In the past Banks were a service industry, the overall profits they made covered the losses made by some necessary services [providing cash] this was normal business practice for many organisations. NOT anymore, thanks to GREED they want to make a profit on every part of their business, so they are removing all the non-profit making departments. SO THEY CAN CONTINUE MAKING MULTI BILLION DOLLAR PROFITS EVERY YEAR. THEY ARE NO LONGER A SERVICE INDUSTRY.

Well if you ran a business would you run it as a charity or as a money making exercise? This is how our capitalistic economy works, business make profits, shareholders get dividends, they pay tax to the government who in turn use that money for services for everyone.

Maybe North Korea would be better suited to you, everything controlled, you'd be complaining about that too.

 

[Greg350]

so many comments about noting new and whingers, FACT --it is our money -not the banks and service is a thing of the past
Fact-- there is more money wasted on paying the CEO and board members than what it costs to transport cash--Fact -the banks encouraged us to use hole in the walls , plastic money , cell phones , so they could reduce the wages bill, now they want to gouges us for the lack of those services--fact the banks did not like the royal commission and are now making us pay,Fact-- the ALP made cash legal tender so how dare the government do that to impose a cost of service on the banks The banks will show the customers just who they are dealing with. Plastic with surcharges, now cash for service, next a surcharge to use your phone to make payments ( they missed that one)
FACT - The banks are nothing more than greedy profit driven grubs , refusing pay increases for staff, raising costs to customers and all the while saying their massive billion dollar profits are not good enough to sustain their existence.

Fact - Yes it's our money and it's free to access it electronically, only if you want cash you have to pay for the service. Do you think cash just appears out of the tellers arse, it has to get to the bank and that costs a lot.

Fact - Please cite the costs involved in transporting the cash for all of Australia for the CBA over a year? You must know as you said, for a fact, that the CEO gets more.

Fact - Yes they encouraged us to use electronic banking, how is that relevant to this fee for OVER THE COUNTER withdrawals?

Fact - Cash is legal tender, so??? Do you know what that means, obviously not. It means the Australian Dollar is the official currency used in this country for transactions, you can't go into Coles and pay with Japanese Yen. In no way does that mean a business HAS to allow cash into or out of their premises, they do not have to accept it and the bank IS providing it, at a cost, for this high expense service.

Fact - I haven't paid a bank fee for decades, don't know what you're doing wrong but if you have the right accounts you can avoid all fees, even this "new one", which isn't really new.

Fact - "greedy profit driven grubs" Hahahaha, yeah, that's called a company who make profits for their shareholders. That's our capitalistic economy. Been working like that for........ever. They make profits, shareholders are happy, the banks pay tax, in turn that goes back into the economy and a strong banking system is paramount to a strong economy. Would you like the government to say to the banks, You can only make a 1% profit this year". Everyone whinges about the lack of freedoms we now have and here you go wanting to control the banks, shouldn't they have freedoms too?

It's a $3 charge on over the counter withdrawals, it is not new, there have been accounts with this type of fee for decades now around the different banks, set up the right account for you and you can usually avoid these fees, or just get with the times and use electronic banking

 

[Zemo]

I use Bendigo Bank & haven't had a problem with them except they are now charging a fee for branch transactions, That has only started some time in the last 3 months. Your account must have been scammed by somebody. I know Westpac, Bank SA and St George Bank are connected to each other. If your money was going into the Bendigo Bank maybe somebody had stolen your identity. They may have thought it was a genuine account. Was it in your name?

As far aas we knew, our money was in Westpac and nowhere else. We'd banked exclusively with Westpac since the 60s. When we tried unsuccessfully to trace where the cash was flowing, each time Bendigo's name came up as the transaction points between them and that's as far as the money trail went. Westpac could give no explanation ... or chose not to. So we moved everything to Commbank, which still calls itself a bank.

 

[gollywog]

This is utter bullshit!!! Come on people, CHANGE banks, take YOUR money elsewhere!!!!
I will not be dictated to and have to pay a fee to access my OWN MONEY!!!!! Maybe the GREEDY Executives and Shareholders should take this fee out of THEIR big fat profits!!

 

[Daibhin]

No, I haven't been affected by the new cash withdrawal fee from a teller inside the bank. Can't remember the last time I used cash when shopping but would have used the ATM because one shop is cash only - probably not disclosing all transactions .

Each day I transfer what I will need from my savings to my shopping account, hoping not to go over that amount, if I must then it's a simple transfer using my phone.

The charges I notice are not by the banks but by the shops that do not show clearly that they have a fee for using our cards. Where I have my coffee and muffin break there's an 8 cent fee on top, which, I suppose, helps them cover business banking charges.

 

[yahoo sirrius]

Here is a bank making record profits now just put more fees to raise their profits even more when is our gov going to bring them back under control and stop the banks doing what ever they want to do

 

[Jennie]

Likewise! The last time I went into the bank was to draw out cash from their inside ATMs. Watched in frustration while in the queue, as a couple of Asians cleared all the cash out - they had thick wads of cash. Apparently, it's not uncommon.

They gamble with it at the casinos it's called money laundering. Watched an Asian opening a case to get more money at a poker machine, the case was full of money, not $5's or $10's either, all $50's and $100's.

 

[Zemo]

This "new" fee is for over the counter withdrawals, nothing to do with ATMs. And I'm surprised an ATM provider provides free withdrawals to all? Maybe Westpac pay them. What's the company's ATM name?

It's a mob called Prosegur. While you're at it, have a look at who owns the company ...

 

[Zemo]

The ATM you're talking about is owned by Precinct, a company owned by the cash transport company Prosegur Australia.

The ATM's ARE free to use, I assume the banks all pay an amount each to have this service available.

In reply to another post, have a look at who owns Prosegur. Are there any Strayan-owned companies left in this wide brown land?

 

[IAN3005]

Easy. Vote with your feet people. There are soooo many choices these days

You'll find that soon every bank will be the same.... they are FORCING people to go cashless by charging a fee.

 

[Cheezil]

Disgusting rip off!
How can we even trust the figures (those using cash) they are using as an excuse to shut branches anyway?
As I'm a low income earner, my money will be moved from CommBank if they start charging a fee on my savings & if all other banks start doing the same I'll be looking at using cash only for everything, stuff the rogues! Imagine how much the fees will be once cash is no longer an option at all & we be forced to pay their stinking fees!

We seem to be losing more & more of our freedoms & rights very fast!

 

[Cheezil]

You'll find that soon every bank will be the same.... they are FORCING people to go cashless by charging a fee.

Yes cant trust their figures claiming only 15% of customers use branches/cash etc either, just an excuse for them to justify doing away with branches & forcing 100% digital banking

 

[Barbara V]

I only go into a bank prob once a year to withdraw cash to pay for firebreaks or slashing as it's over what I can withdraw from supermarkets. My bank now has no ATM nearby,the others charge like a wounded bull. I have used them but hate giving anymore money to a bank I don't belong too

 

[IAN3005]

Yes cant trust their figures claiming only 15% of customers use branches/cash etc either, just an excuse for them to justify doing away with branches & forcing 100% digital banking

I trust NOONE... FIGURES CAN BE MANIPULATED..

 

[Zemo]

Next thing, Woolies and Coles et al. will charge you just for walking in the door.

 

[Luckyus]

This is where the government can step in and say no to these robbing bastrd tactics. But the useless bastards won't.

 

[Zemo]

This is where the government can step in and say no to these robbing bastrd tactics. But the useless bastards won't.

Of course. No votes in that from the large end of town, where most of the money is securely invested for their own interest. The hoi polloi can just go jump.