LIFESTYLE NEWS - The transformation of bank pricing over the past decade has not just been about the shift from branches to digital channels such as internet banking and mobile apps.
There has also been a deliberate shift in pricing to disincentivise the use of cash.
But over time there has been a not-so-subtle shift towards disincentivising customers from drawing cash at ATMs in favour of withdrawing it at supermarket till points.
The changes in pricing have been stark. A decade ago, drawing cash at a till point cost anything from around R1 to R5.20, depending on the account. Charges were higher for the failed Post Office and bank-collaboration Mzansi accounts (R4.50 or R4.70). These fees were not too far from the cost of ATM withdrawals (in some cases, cash at a till was higher).
But over time, these charges have declined to the point that, for many accounts, the flat rate is R1 per withdrawal (at the higher end, withdrawals at retailers are entirely free, or a reasonable number are).
A simple comparison between the costs of withdrawing cash at an ATM (even the bank’s own) versus a supermarket till point shows just how expensive the former is.
On entry-level transactional accounts, a withdrawal of R1 000 at an ATM will typically cost upwards of R6, while the same withdrawal at a till will cost between R1 and R2. This is the difference between 0.6% and 0.1% in fees. At lower withdrawal amounts, the R6 (or higher) charge becomes material.
