MILLIONS of ANZ customers could effectively be barred from banking at post offices amid a stand-off between the bank and Australia Post.

The bank has so far refused the terms of a new offer by Australia Post to continue providing banking services to ANZ customers at post offices.

ANZ’s existing contract with Australia Post is due to expire in three months.

Under a new contract offered by Australia Post chief Christine Holgate, ANZ would help fund the cost of providing the banking services.

If the bank does not agree to the new terms within three months, ANZ customers will no longer be able to bank at Australia Post.

According to Australia Post, 6000 ANZ customers – many of them small businesses – use post offices for banking every day across the nation.

ANZ has been contacted for comment.

While ANZ customers who don’t have a local bank branch have been able to use post offices for their banking, Australia Post has told the banks it is sick of subsidising the service.

Ms Holgate said she was hopeful of getting a deal with ANZ. “We continue to talk to ANZ,” she said.

This afternoon, Ms Holgate revealed Westpac and National Australia Bank had each signed historic agreements that would help guarantee the future of local branch banking services, through post offices, in communities across Australia.

The Commonwealth Bank agreed to the deal last week.

Each bank has agreed to pay about $22 million a year, and transaction fees, for access to the 3500 post offices. The value of the transaction fees has not been disclosed.

It means Australia Post is now at least $66 million better-funded each year. Assuming all those deals continue five years, they will put $330 million, plus transaction fees, into Post coffers.

The CBA deal is for five years while the Westpac and NAB deals are for three years.

Ms Holgate said the new ANZ contract would have a different “Community Representation Fee” to be paid annually, coupled with revised transaction costs.

It is believed Australia Post is driving home the point to ANZ that with no long-term commitment, the lender must still contribute to the investment required in post office banking.

Bank branch numbers across Australia — particularly in rural areas — have been dramatically cut in recent times.

Banks have closed 200 bank branches and 700 ATMs ripped out in the past year alone.

Australia Post said there were 1550 communities across Australia that had a Post Office but no bank branch.

The postal authority will use the $22 million annual fee from each bank to invest in network infrastructure, including in technology, security upgrades and marketing support.

The agreements also mean Australia Post can increase its base transaction payments to its Licensed Post Office partners by about half and increase the annual minimum payment to them by a quarter.

“This additional funding will enable us to invest in the post office network so that we can provide safe, reliable banking services, boost funding to our Licensed Post Office partners and importantly continue to support communities across Australia,” Ms Holgate said.

In rare praise for banking chiefs in a year where the financial services royal commission has dominated headlines, Ms Holgate thanked those who had already signed up.

“In signing these agreements, they have both shown their commitment to securing the future of vital banking services which is critical to the long-term social and economic prosperity for communities across our nation,” she said.

Australia Post has previously lost money on providing banking transaction services and says it does not have the funds to continue to proping up such services.

“This support will also allow us to work with our partner banks to add to current services — such as coin-counting for small businesses which is vitally important — and which we have not offered before,” Ms Holgate said.

NAB has led the way with branch closures, shutting 71 branches the past year. This is followed by followed by ANZ with 51 branch closures, Westpac with 40 and CBA with 34.