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Westpac cuts Exception Fees across credit cards,
personal accounts and business accounts.
3 August 2009
Westpac today announced an across the board reduction in all exception fees on
its credit cards and savings and transaction accounts as the next step in its
customer focused strategy. This will apply to both personal and business
customers.
From 1 October 2009, Westpac will reduce all its exception fees to $9. This
includes account overdrawn fees, outward dishonour fees and credit card missed
payment and over the limit fees.
Group Executive, Westpac Retail and Business Banking, Peter Hanlon said the
significant reduction across all products will benefit our 5 million personal and
business customers.
“This is the most significant move on bank fees that the Australian banking industry
has seen for a number of years. Westpac has been working on reducing these
fees for some time, and believes all our customers will benefit from this initiative.
“We believe the fairest outcome for our customers is to take a comprehensive
approach to our fee structure and cut exception fees across the board. All our
customer segments will benefit from this initiative.
“The new structure is simple to understand and is fair value for the service
provided. “It is appropriate that we continue to apply a fee for the service as there is a cost
every time the bank honours a transaction on an overdrawn account or processes
a bounced cheque. “It also ensures we don’t encourage customers to overdraw their accounts and pay
additional interest rate charges,” Mr Hanlon said.
Today’s announcement follows Westpac’s review of these fees over the past 18
months including changing exception fees on its Basic Bank account for
pensioners and other social security recipients. Our earlier changes to the Basic
Bank Account will remain in place.

“The comprehensive and significant reduction in these fees supports our
commitment to have a transparent and fair fee structure in place for all our
customers. We’ll continue to work with our customers to assist them in avoiding
these fees altogether.
“This initiative forms part of Westpac’s broad based customer centric strategy.
We’ve opened 19 new branches as part of our $90m branch investment program
as well as boosting the team with an additional 500 bankers this year which
includes bringing back the Bank Manager as well as reinstating local business
bankers in branches this year. We are making real progress for our customers,” Mr
Hanlon said.
*Nb: from official announcement released – Westpac Banking Corporation website,
3 August 2009.
Frequently Asked Questions & Answers
- What fees are being reduced?
The following fees are being reduced: account overdrawn fee, outward dishonour
fee and periodical payment not made fee, credit card over limit fees and credit card
late payments.
- Will fee reductions be applied to business products?
Yes this fee reduction is applicable to all consumer and business transaction and
savings products, credit cards and personal loans.
- Why have we not removed fees altogether?
Westpac has taken the most comprehensive and holistic approach to exception
fees that the industry has ever seen. We will continue to apply a fee for the service
provided by the bank when we honour a transaction on an overdrawn account or
process a dishonoured payment. This ensures we do not advertently encourage
our customers to overdraw their accounts and pay significant interest rate charges.
It is also evidence of responsible banking – it does not encourage customers to
ignore their commitments.
- How are we telling our customers about the changes in exception fees?
We will also communicate to our customers via tombstones in national
newspapers, via the internet, direct mail and updated Terms & Conditions
booklets. All our front line people have a critical role to play in advising customers
and we’ll support this through in-branch flyers that summarise how customers can
avoid fees and pay less for their banking overall.
- When will the fees appear on customer statements?
We’ll communicate the fees just as we do today. They will become aware of the
changes to fees through the program outlined above and through ongoing
Westpac staff conversations with them.

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