Independent money machine operators cliam they are being barred by two big banks from expanding their networks, but one bank says customers do not want to pay the high $1.80 transaction fee for the independent machines.

ATM Plus and NZATM collectively operate about 370 ATM machines in New Zealand, mainly in small communities and places where banks say it is uneconomic to provide the service.

But two big banks, ANZ National and ASB Bank, have refused to allow their customers to access independant ATM's, even in places where there is no alternative bank machine.

ATM Plus managing director David Dickinson said he had battled both banks for four years without success.  The two ATM companies have launched a campaign calling ANZ National and ASB customers to demand that they be given access to the independent machines.

Bank of New Zealand, Westpac and Kiwibank do allow their customers to use independent ATM's.

ANZ National, which owns National Bank, and ASB together account for about 40 per cent of all ATM cards.

Mr Dickinson said the independent ATM companies could not survive or expand without access to all bank customers.

The independent operators wanted to expand their network to a toal of about 2000 machines before the 2011 Rugby World Cup, nearly the same size as the bank-owned network.

A recent opposition party parliamentary inquiry into banking found there was a lack of competition in the ATM market.

Independent ATM's were usuallt installed in shops, service stations or bars, and in turn attracted customers.

But merchants were reluctant to install the machines when half those customers were rejected and instead took their business elsewhere.

ANZ National said a recent online survey showed its customers did not want to pay the $1.80 fee for using an independent ATM.  "We are confident that our ATMs adequately service our customers' needs," the bank said.

Mr Dickinson said the fee was disclosed before a transaction took place and it was the customer's choice to proceed.

Massey University head of banking studies David Tripe said the standard argument as to why banks did not allow customers to access third-party ATMs was concerns over security.

"[But] if Westpac and BNZ have found them suitable to do business with, one does wonder" why ANZ National and ASB would not, Mr Tripe said.

Mr Dickinson said the independent machines used the same security protocols as the bank machines.

(Source: Roeland Van Den Bergh - The Dominion Post, 4/12/2009, www.stuff.co.nz)