Commonwealth Bank introduces new transfer restrictions – after rolling out ‘cashless’ branches

The Commonwealth Bank has announced plans to restrict monthly transfers to certain accounts and merchants to protect customers from scams and fraud.

Emails seen by Daily Mail Australia have been sent to Commonwealth customers informing them that the measures will be rolled out in early September or within 30 days of the notification being sent.

We are introducing new measures to help protect you against scams and fraud.

“We may limit the amount you can pay to certain accounts or merchants, for example those we believe are connected to cryptocurrency exchanges, to no more than $10,000 in aggregate from all of your accounts per calendar month.”

In its revised terms and conditions, the bank advises that it may “suspend or close your account, cancel or suspend your card or other access method” to stop crypto-related payments.

It may also refuse to “process or hold any transaction or transaction or certain types of transactions or transactions” without giving you advance notice.

Fred Schebesta, the founder of the financial services comparison app Finder and a self-described “Crypto King of Australia,” said that while it’s important to protect customers’ banks, it shouldn’t hinder digital finance innovation.

“I am not surprised that the Commonwealth Bank has announced that they are restricting transfers to crypto exchanges,” he told Daily Mail Australia on Thursday.

The crypto market cap is estimated at $1.22 ($1.87) trillion and there is a growing number of people entering the crypto space.

“Banks must be careful not to hinder the evolution of digital finance.”

A CBA spokesperson told Daily Mail Australia that the move “is all about protecting customers from scam risks associated with making certain payments to these crypto exchanges.”

“Essentially, it’s just to reduce the amount and amount of money customers lose,” the spokesperson said.

“We are doing our best to strike a balance that keeps all customers safe while minimizing inconvenience to many.”

Since June, when the Commonwealth Bank first announced the planned measures, it has been holding crypto payments for 24 hours before settling them.

“Customers making payments to cryptocurrency exchanges are currently at significantly higher risk of potentially being scammed,” CBA General Manager of Fraud Management Services James Roberts said after the June announcement.

While these measures do not eliminate the risk of customers suffering losses as a result of a scam involving a payment to a cryptocurrency exchange, they are part of a series of initiatives designed to help customers reduce the risk of becoming a victim. become a scam’.

However, not all of the bank’s customers are convinced.

On a Facebook page devoted to “negative experiences” with the CBA, some saw it as overstepping the bank.

“I think every bank wants to check our money, so cash is the most reliable,” one wrote.

Another commented that it made day trading crypto virtually impossible. Some even accused the bank of hypocrisy.

“The crazy thing is that banks have efts (wire transfers) that are now buying crypto and they want people not to buy,” said the Facebook user.

“Work that out.”

While the Commonwealth Bank spokesman said the $10,000 is a ceiling that cannot be raised, the revised terms for savings and investment accounts were less clear.

They stated that if there was a higher limit requested, but it was not used for a month, the bank could “remove or lower it.”

The bank may also lower a limit or refuse payments “if they believe it is reasonably necessary to protect you or us from potential fraudulent activity, scams or other activity that could cause you or us to lose money.”

“When we do this, we will act fairly and fairly to you,” the terms read.

“We are not responsible for any loss, cost, expense or other inconvenience you may incur.”

This seems to contradict other assurances that when the bank suspends payments to crypto-associated entities or reduces limits, it will do so “without liability to you for any loss or damage.”

While the $10,000 limit is the total amount that can be transferred from the combined accounts, a CBA client maintains that one Facebook user suggested a way around the new rules.

‘I just transfer it to another bank and pay from there,” they said.

‘Problem solved.’

Westpac announced in May that it was trialing “customer protection” for some cryptocurrency payments to reduce scams.

The bank did not state that it was imposing limits on transfers and did not go into detail about how the “protection blocks” work.

In July, NAB also stated that it will “deny some transactions to high-risk cryptocurrency exchanges, while Bendigo Bank said it would “block certain high-risk crypto-related transactions to protect its customers.”

All banks stated that the measures were intended to protect customers from a ‘scam epidemic’.

The move comes as the bank opens a number of cashless branches where customers can no longer access their money over-the-counter.

Teller cash transactions are not available at branches, including Commonwealth Bank Place in central Sydney, as well as nearby South Eveleigh, Barangaroo, Penrith and University of Sydney, which the bank now refers to as ‘specialised centres’.

Daily Mail Australia also understands that some branches of ‘specialised centres’ in Brisbane and Melbourne are no longer allowing over-the-counter cash withdrawals and deposits.

Deposits and withdrawals can still be made through on-site ATMs, but for those who don’t have their debit cards handy, things get much more difficult.

Last week, Daily Mail Australia reported that the Commonwealth Bank can also refuse their services to anyone who “in their opinion” is “abusive, harassing or threatening to any person” or “promotes or encourages physical or mental harm to any person.”

A spokesman for the Commonwealth Bank told Daily Mail Australia the terms were designed to avoid ‘addressing the issue of financial abuse in the context of domestic and family violence’.

“In 2020, we updated our Acceptable Use Policy to address technology-enabled abuse and provide customers with a more secure banking experience,” the spokesperson said.

“Any customer who uses NetBank or the CommBank app to engage in unlawful, defamatory, harassing or threatening conduct, promoting or encouraging physical or mental harm or violence against any person, may have transactions denied or access until digital banking services are suspended or discontinued. ‘.

Last year, Australians lost more than $220 million to cryptocurrency scammers, the Australian Competition and Consumer Commission reported.

The watchdog warned with some scams. Customers think they are investing in things other than crypto, but are asked to pay with that instead of cash.