LINK is the operator of the UK’s cash machine network. Earlier this
year, it announced a 20 per cent reduction over four years in its
interchange fee – the fee paid by card issuers (banks and building
societies) to ATM operators, which funds the network.
The first reduction in the fee (five per cent) came into effect
on 1 July 2018.
LINK has today published figures showing that 76 out of 2,365
protected free-to-use ATMS closed between 1 February 2018 and 1
July 2018. A protected ATM is one that is more than 1km from any
other ATM.
The Payment Systems Regulator (PSR) has announced that it will
take regulatory action by requiring LINK to set out more
explicitly how it will maintain the broad geographic spread of
free-to-use ATMs across the UK.
Commenting on the announcements, Rt Hon. MP, Chair of the Treasury
Committee, said:
“When LINK launched its consultation on the future level of
its interchange fee last year, I warned that it was difficult to
see how it could guarantee the reach of free-to-use ATMs.
“Today’s figures show that, even before the interchange fee
changes took effect, one protected ATM closed every other day.
These protected ATMs will represent the only feasible means of
accessing cash for many people, so this is a worrying trend.
“The PSR is rightly concerned by the closures, but I fear its
regulatory intervention may be too little, too late. It must
ensure that LINK is held to its commitment to maintain the broad
geographic spread of free-to-use ATMs.
“The Committee has been clear that this is a major test of
what is a relatively new regulator, but the banks, the ATM
deployers, and LINK itself also have a duty to ensure consumers
don’t lose out.”
--Ends--
Notes to Editors
- Today’s
announcement from LINK is here, and the
announcement from the PSR is here.
- LINK’s most
recent update to the interchange fee implementation (here) states:
LINK, the UK’s main cash machine network, has announced
changes to future Interchange rates. Following a six per cent
year-on-year fall in the volume of ATM transactions, the LINK
Board has decided to cancel the third reduction, due in January
2020 and put on hold the fourth reduction, due in January 2021,
pending a further review next year.
In January 2018, LINK announced a phased 20 per cent
reduction in Interchange rates over four years, from around 25p
to 20p. The first reduction in Interchange of five per cent took
effect on 1st July 2018 and the second five per cent reduction
will take place on 1st January 2019. Following a six per
cent year-on-year fall in the volume of ATM transactions, the
LINK Board has decided to cancel the third reduction, due in
January 2020 and put on hold the fourth reduction, due in January
2021, pending a further review next year.
