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Sub-networks key to ATM reform
19 December 2008
The recent RBA decision to designate the Australian ATM system has provided certainty to sub-networks such as 'rediATM'. With ATM reform being driven by calls for competition and efficiency in the Australian ATM system, Cuscal has welcomed the news that new ATM system rules allow for major sub-networks such as rediATM to play a key role in keeping the ATM market competitive.
The RBA carved out an exception relating to sub-networks when it designated the ATM system. Within the new 'Access Regime' laws (which are subject to public consultation) a sub-network of card issuers and ATM owners, such as rediATM, can charge a 'common' interchange fee arrangement with other ATM networks.
Omaya Robinson, Cuscal's Head of Transactional Banking, said: "This exception will allow for increased competition within the ATM market. The rediATM sub-network is set to offer consumers a safe haven from direct charges."
The rediATM sub-network is presently a collaboration between more than 60 ATM owners and 120 card-issuing institutions. Led by Cuscal, rediATM features more than 1400 ATMs throughout Australia and will provide direct charge free transactions to more than 3 million cardholders.
In readiness for the implementation of direct charging in March 2009, Cuscal and its rediATM network partners are rebranding all ATMs in the network so consumers will be able to easily find and use rediATMs. A new website at www.rediATM.com.au features an online locator for cardholders to search and find their nearest ATM.
"The new rediATM network will provide ATM owners and issuers with an invaluable opportunity to be part of a national direct charge free network. For many of Cuscal's customers, this is extremely appealing due to customer retention benefits and the fact that rediATM is not run by a direct competitor," said Robinson.
Cuscal's rediATM network is already one of Australia's largest ATM networks and is on the path to double its size by 2012.
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For further information contact:
Rachel Price
Senior Marketing Manager
Phone: 02 8299 9899/ 0423 847 573
Website: www.cuscal.com.au
Cuscal is the leading business-to-business provider of wholesale banking and transactional banking services to specialist retail financial institutions in Australia.