In a move rivalling NAB's cuts to bank fees, Westpac has announced it will be slashing exception fees across credit cards, personal accounts and business accounts.
The major bank announced from 1 October 2009 it will reduce exception fees to $9 - this includes account overdrawn fees, outward dishonour fees and credit card missed payment, and over the limit fees.
Group Executive, Westpac Retail and Business Banking, Peter Hanlon defended the bank's decision to keep some fees in place.
"It is appropriate that we continue to apply a fee for the service as there is a cost every time the bank honours a transaction on an overdrawn account or processes a bounced cheque.
"It also ensures we don't encourage customers to overdraw their accounts and pay additional interest rate charges," Hanlon said.
Westpac has been reviewing fees for the past 18 months including changing exception fees on its Basic Bank account for pensioners and other social security recipients.
NAB and Westpac will lose a combined $400m a year in revenue by cutting the fees.
More bank fees could go - Cannex