Commonwealth Bank Triples Fees for Depositing Cash

New fees to target business customers

People queue for ATM machines outside a branch of the Commonwealth Bank in Melbourne on August 8, 2018. - Australia's biggest bank, the Commonwealth, posted a slide in annual profits on August 8, capping a tumultuous year for a troubled lender which has been rocked by scandals and board upheaval. (Photo by William WEST / AFP) Photo by WILLIAM WEST/AFP via Getty Images

Commonwealth Bank of Australia (CBA) has come under fire for more than tripling the fee for business owners depositing cash into their accounts.

Customers holding a business transaction account will have to pay a $10 fee for depositing a quick cash bag, up from $3.

The Big Four bank sent a letter to customers, cited by The Epoch Times, advising them of the increased fees from Oct. 1.

“We are writing to let you know that we are making changes to transaction fees on your Business Transaction Account from 1 October 2023,” the letter states.

QuickCash bags will lift from $3 to $10, while assisted over-the-counter fees will jump from $3 to $5. Cheques will also increase from $3 to $5 on the same date.

Despite these fee hikes, the bank said they would continue to support customers

“We know some of our customers will always prefer paying in cash, and we will continue to support you with services,” the CBA said in the letter.

Letter from the Commonwealth Bank to business transaction account holders advising them of new fees LinkedIn/Jason Bryce

Cash Welcome campaign advocate Jason Bryce questioned how the Commonwealth Bank could justify raising business cash deposit fees by 330 percent from $3 to $10.

“This is not for a teller service. This is a $10 fee for dropping your cash bag into the deposit machine, probably after hours,” he said in a LinkedIn post.

“This is how the dominant bank in Australia treats small business—not serving their needs, but slugging them with higher and higher fees for simply running their business. A retailer wanting to make a deposit each evening will pay $2,500 per year in deposit fees.”

Bank customers took to social media to vent their concerns about the move on the weekend.

“$10 deposit fee! Commonwealth Bank is slugging small businesses $10 to deposit cash from 1 October. Better Options: credit unions, building societies, member owned banks,” one Twitter user said.

Big Banks Shifting Away From Cash

The news comes after Macquarie Bank advised it would stop accepting cash, cheque, and phone payments from next year.

Australia’s fifth largest bank is moving towards becoming a digital banking platform only, rather than accepting cash.

“Between January and November 2024, we’ll be phasing out our cash and cheque services across all our banking and wealth management products, including super and pension accounts,” the bank said.

“We'll also be switching off our automated telephone banking service used to make payments over the phone.”

Macquarie’s partnership with National Australia Bank (NAB) for cash withdrawals and deposits at bank branches will also end in November 2024.

The move sparked criticism from customers on social media, with some suggesting social credit scores could be on the way.

However, the bank told The Epoch Times the majority of customers “already bank digitally.” Macquarie would also help the “less than one percent” of customers using cash to gain access to digital payment methods.

“As a digital bank, we’re committed to transitioning to completely digital payments by November 2024 as a safer, faster and convenient way to bank,” a Macquarie spokesperson said.