Customers at a major Australian bank have just five days before a sweeping series of changes are introduced to help shift the bank towards “completely digital” payments.
Macquarie Bank last year announced it would phase out its cash and cheque payments for customers from this year, citing a shift in customers’ banking habits.
From May 20, Macquarie customers will not be able to access over-the-counter services at Macquarie offices, deposit or collect cheques at a Macquarie office or order new chequebooks.
Come November 1, customers will not be able to write or deposit personal cheques, request or deposit bank cheques or make super contributions or payments via cheques.
Macquarie will also end its partnership with NAB branches, meaning no depositing cash or cheques over the counter at NAB either.
Customers with a Macquarie Transaction account or Offset account with a Macquarie Debit Mastercard will still be able to withdraw cash at an ATM.
How to pay digitally
There are several ways you can make digital payments, depending on what you want to do.
The most common methods are: BPAY, electronic funds transfer (EFT), direct debit or PayID.
BPAY, which stands for for bill payment, is a way of paying bills online.
Those wishing to make a BPAY payment will need a biller code and customer reference number, which are both found at the bottom of a bill.
EFT is when money is sent from one bank account to another, and is most commonly used for one-off payments.
A BSB, account number and account name is the information you need to pay money via EFT.
Direct debit refers to the automatic transfer of money from one account to another which is mainly used to pay regular bills such as gym memberships.
PayID is used to pay someone quickly via their phone number without needing information such as their BSB or account number.
This method of digital payment can only be used if the recipient has PayID set up (this can easily be done through most bank’s apps).
Changes for businesses
To prepare for the phasing out of cash and cheque services, businesses will need to ensure their payers, clients, and other businesses they work with are transacting digitally.
“If your payers, clients, and other businesses you work with aren’t set up to pay you digitally, please prompt them to get started now,” Macquarie said.
Clients can also no longer make payments over the phone after Macquarie ceased its automated telephone banking service in March.
What happens if I open a Macquarie account after May 20?
Customers who open a Macquarie account between on or after Monday, May 20 can still deposit cash and/or cheques at NAB branches or request a bank cheque until the services cease on November 1.
Digital banking was a “safe, quick, and more convenient” way to transact, Macquarie said.
“As a digital bank, we’re committed to transitioning to completely digital payments, and continuing to ensure our customers can access secure and reliable digital payment options,” Macquarie said.
The shift follows other major banks as they transition towards digital-focused banking.
ANZ, Commonwealth Bank and NAB have already begun phasing out cheques.
Bankwest is moving to a digital bank this year, as the bank prepares to shut 45 branches in Western Australia by October.
While the bank faced backlash over the move, it said the decision was influenced by customers’ preferences, with 97 per cent of transactions completed digitally, while less than 2 per cent of customers visit a branch regularly.
Australians are using less cash for day-to-day payments, with consumers increasingly choosing to pay for things electronically, according to the Reserve Bank of Australia.
In 2019, 27 per cent of in-person transactions were made with cash but by 2022 this more than halved to just 13 per cent.
The use of ATMs has also been declining since 2008, with the number and value of withdrawals falling by about 60 per cent and 40 per cent, respectively, the RBA reports.
While cash is no longer king, there has been a small comeback in withdrawals.
The RBA’s Retail Payments report, published last month, revealed Australians withdrew $9.5 billion in total from ATMs in February 2024 — a growth rate of 9.5 per cent over the year from February 2023.
The report showed Aussies made 30.9 million ATM withdrawals — a 3.7 per cent rise over 12 months.