But, collectively, consumers are still paying more than $4 billion every year in other fees.
The big four banks have decided to remove fees for customers using their ATMs, but the fees they are cutting are an area of banking already shrinking.
The Reserve Bank says ATM use is at a 15-year low, despite the number of machines being up 26 per cent over a decade ago.
Still, CMC Markets analyst Michael McCarthy says it will cost the banks to eliminate ATM fees.
"It's estimated they collect about 5(00) to 600 million dollars each year from ATM transferral fees. Of that, they make about a hundred million dollars' profit. So that's not going to be significant, in terms of the amount they make each year, because that represents less than one per cent of their profitability."
Some politicians, like Senator Derryn Hinch, are questioning how the decision was made.
"How come the banks got together so quickly over the weekend? Within about 10 minutes of each other, one bank says, 'We're going to do it,' the others fall in line. When they put their bank (lending) rates up or down, it takes them days to sort it all out."
But Federal Treasurer Scott Morrison has told the ABC the Government still will not pursue a royal commission into the sector.
"We're fixing accountability. We're fixing access to people having their claims heard and dealt with in a fast fashion. We've dealt with increased powers and resources for ASIC. I mean, we're just getting on with it."
The money editor at RateCity, Sally Tindall, says, despite the reprieve, Australians pay $4.4 billion in bank fees every year.
"There's no shortage of bank fees. The list is as long as your arm. There's home-loan fees, transaction-account fees. There's superannuation fees. There's fees for even overdrawing your account. The list just keeps going on."
Ms Tindall says credit-card fees top the list, earning banks more than $1.5 billion last financial year.
"That's because there's an ongoing annual fee, and it can climb as high as $1,200. Over the course of your banking life, that can run into the thousands, even tens of thousands, just for a piece of plastic."
The Reserve Bank has taken action recently by reducing interchange fees, but consumer advocates like Christopher Zinn say they want more.
"Australians use tap-and-go* more than almost anyone else on the planet, yet you can be subject to fees for that. It's quite ridiculous. We really need fee-free payment systems right around the block, and for all the other technologies that are coming, too."
