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important notice about transacting with Big Sky
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From 1 January 2007, important and essential transaction pricing changes need to be introduced by Big Sky. These follow recent changes made by the Reserve Bank of Australia (RBA) to Visa debit, EFTPOS and Visa credit pricing in Australia. Importantly, it is still possible for all members to continue to be able to transact fee free with Big Sky.
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The RBA reforms have significantly reduced the cost of EFTPOS transactions however the interchange fees1 paid to card issuers like Big Sky on Visa transactions conducted on a Visa debit card, has also been significantly reduced. There is also a small reduction in interchange fees paid to Big Sky on Visa Credit card transactions.
All transactions conducted by members incur a net cost for Big Sky totalling more than $1 million per annum. This cost is not passed on to members. Please be assured that your Credit Union will continue to absorb reasonable member generated transaction costs. The pricing changes in response to the RBA reforms are to encourage members to transact in the most cost efficient way for your Credit Union to assist in maintaining our commitment to the credit union difference of providing you with reasonable fee-free banking.
If members transact in a cost efficient manner, as outlined in this document, Big Sky will potentially recover the impact of the RBA changes and reduce its total transaction expenses for the benefit of all members.
The changes are represented in the following table:
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| | Effective from 1 January 2007
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| Visa purchase at merchants (retailers)
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| | | | Included in limit of 15 free per month then $1.60 per transaction
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| | ATM/Cheque/Bank@Post withdrawals/Cash Advance/Declined or Invalid ATM
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| Included in limit of 15 free per month then $1.60 per transaction
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| 5 free per month then $2.00 per transaction
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| | | $2.00 per month (if applicable)2
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| | | | | | | Direct Debits and Credits
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| | | | | | | | | | | | | | | | | | Over the counter transactions
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Please read this to discover how to simplify your banking. If you have any questions please don’t hesitate to contact us.
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Summary
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- The benefit of the reduced cost of EFTPOS following the RBA’s changes will be passed on to members by providing you with free unlimited transactions. This means you will have unlimited fee-free access to cash via EFTPOS.
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- The previous group limit of 15 free EFTPOS/ATM/Cheque/Bank@Post/Cash Advance withdrawals per month has been reduced to 5 free transactions per month recognising EFTPOS has been separated out of the group and the unlimited free availability of cash via EFTPOS. The cost for ATM/Cheque/Bank@Post/Cash Advance withdrawal transactions over 5 per month will be $2.00, which reflects the much higher average cost incurred by your Credit Union of these transactions.
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- A charge of $2.00 per month (if applicable) per Visa Debit Card will recover the cost of RBA reform to Visa Debit. This charge will not apply to members who have savings and/or loan balances of $5,000 or above or to full-time students and members with Golden Saver accounts. The charge can also be avoided by replacing your debit card with a Big Sky Credit Card or alternatively a Big Sky Redicard.
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- From 1 January 2007, the Big Sky Visa Credit Card will have added functionality. Press Chq or Savings at an ATM or EFTPOS terminal and your S1 account will be debited. Press CR and you will be using your approved credit facility. You will now need only one card and one PIN number.
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the perfect solution
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Click here for more information on Big Sky's Credit Card
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FAQs
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Q Why is there a $2 per month charge for a Visa Debit Card and not for a Visa Credit Card or Redicard?
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A The RBA reforms have a significant adverse affect on our Visa Debit Card, a small adverse affect on our Visa Credit Card and no effect on our Redicard. The adverse effect on the credit card is compensated for by an adjustment to the Credit Card rewards scheme.
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Q Why are accounts with a $5,000 or more relationship exempted?
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A Members who save, invest with and borrow from their Credit Union generate income and growth for the benefit of all members. The exemption recognises this support. In the best interests of the credit union, we would still like all members to apply for a Big Sky Credit Card to replace their Visa Debit Card.
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Q Why are ATMs, cash advances, cheques and Bank@Post withdrawals grouped together and limited to 5 in total?
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A These transactions all cost Big Sky $2.50 or more while a Visa Debit transaction or EFTPOS transaction costs $0.04. A purchase using a Big Sky credit card provides commission income as does a Bpay® transaction. The allocation of 5 per month recognises there will be times in a month when an ATM withdrawal or a cheque maybe required however all members will enjoy even better interest rates if EFTPOS is used to withdraw cash, a Big Sky Credit Card is used to purchase from merchants and Bpay® is used to pay bills.
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Q What is a Redicard?
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A A Redicard is an access card that can be used for EFTPOS and ATM transactions and does not have a credit facility.
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Q I have a joint membership and a single membership, how am I affected?
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A The relationship balance and transactions fees are calculated individually on each membership. Should one of your memberships be affected you can contact Big Sky to discuss the best solution for your situation.
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Q Why is cash out from a merchant via EFTPOS transactions free and unlimited while there is a limit of 5 ATM withdrawals per month?
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A A cash-out EFTPOS transaction will cost your credit union around $0.24 while an ATM withdrawal costs around $2.50. The benefit from members using EFTPOS cash-out rather than ATMs is significant and will be passed on to members through even better interest rates on loans and savings.
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Q What do you need to do?
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A There is no need for you to do anything at all. However if you have a Visa Debit Card and wish to avoid the $2 per month charge and don’t have $5,000 in savings and/or loans with Big Sky, transfer any accounts you have with banks to Big Sky.
If you still don’t have a $5,000 relationship with Big Sky you can either apply for a Big Sky Credit Card, which is the best option or alternatively, a Big Sky Redicard to replace your Visa Debit Card.
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Q How do I apply for a Visa Credit Card?
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A You can either download an application or apply online, call 1300 654 321 to have an application form sent to you, or visit your local Service Centre.
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1Interchange fees: paid by merchants (retailers) to card issuers (eg. Big Sky)
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2If relationship balance is less than $5,000. Relationship balance is calculated at the end of each month by adding deposits plus loans, less any overdrawn or overlimit amounts.
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