Banks are warning that ATM fees will rise if measures proposed by the Australian Greens win the support of parliament.
The Greens have jumped on a report showing Australians spend more than $750 a year in ATM fees, mainly to access money from machines not affiliated to their bank.
The Australia Institute and watchdog group CHOICE data shows an average $2 charge applies for non-customer access, even though the actual cost is less than half that.
Fees of up to $4 can apply if a balance check is made before a withdrawal.
The Greens say the findings support its proposal to cap ATM fees at their real cost.
"The amount of money Australian consumers pay in ATM fees is shocking and needs to stop," banking spokesman Adam Bandt said.
But the Australian Bankers Association warns the legislation will backfire.
The association says the annual cost of fees equates to 70 cents per person per week and that amount covers the cost of providing ATMs, which customers access for free.
"Across the whole system the banks are able to recover their ATM costs," association boss Stephen Münchenberg told ABC Television.
It would become uneconomical, especially in regional and rural areas, for banks to provide ATMs if the Greens measures were adopted, he said.
If that happened other providers would likely fill the void but charge more even for withdrawals from their own ATMs.
Greens leader Bob Brown dismissed the warning as "nonsense".
"Out of the billions of dollars in profits, are the big four banks saying they don't have the money to put in more ATM facilities?" he told ABC Television.
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