CBA's War on Small Business

Posted by Michael Kirby on May 11, 2018 12:10:54 PM

We have noticed over the past 12 months the CBA have step by step making it more difficult and more expensive for SME owners to bank with them and run their businesses.

Step 1. They banned any data feeds for personal credit cards to flow through to third party software such as Xero. Many small business owners used their own personal credit cards to pay their business expenses as it is often a difficult task to get a business credit card. This has increased the work load on SME owners managing their accounts.

Step 2. We had many of our clients go to the effort to switch to Business Credit Cards and recommence their data feeds to their Xero Software. The CBA then stopped the data feeds of business credit cards telling clients they now needed to upgrade to the more expensive Corporate Credit Card if they wanted data feed.

Step 3. Many SME owners operate their business using their internet banking to process their business transactions including bulk payments using ABA files. Now the CBA have banned ABA files from their Internet Banking system forcing SME owners to sign up for the more expensive CommBiz platform. To rub salt into the wounds the option still appears and allows you to go through the process of importing an ABA only to be told at the final step oops, you can't do this any more.

Obviously the SME market is one the CBA do not want to be a participant. So we have made the decision to actively encourage all our clients to avoid the CBA bank particularly those operating a small business. There are plenty of banks out their who encourage and support the SME market to bother with one who does not.

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