NORTH YORKSHIRE, England - The Office of Fair Trading has published a report about Link Interchange Network Ltd.'s governance and access arrangements, looking in particular at competition, innovation and efficiency. (Read also, This is Money: Link urged to end Post Office deadlock.)
In March 2005, the Treasury Select Committee considered and reported on ATM charges in the United Kingdom. The committee concluded that surcharging is a legitimate business model that provides access to cash in places where there would otherwise be no cash machines at all. It also found that off-premise ATMs help sustain small businesses.
The committee ruled that all charges had to be transparent to consumers. With the support of member banks and ATM deployers, Link has made it a condition of connection to clearly alert consumers of charges before cards are inserted. At least three warnings are required - on the outside of the machine, on the screen before a card is inserted and before the transaction is completed.
Any ATM deployer that fails to comply with those rules faces fines and, if machines are not brought into compliance, disconnection from the network.
"The report clearly sets out the many areas in which Link has innovated - amongst other developments, alongside the 24/ 7/365 support for the U.K.'s cash machine network, Link is providing the central part of a new faster payments service to speed up clearing of U.K. electronic payments, and is working with partners to develop award-winning mobile payments products," Link chief executive John Hardy said in a news release.
The Link's non-profit Link ATM Scheme, which sets rules ATM deployers connection to the Link network, is drawing on OFT-led discussions to update its consumer-facing objectives, and welcomes OFT and Treasury support for new mechanisms the scheme and its members are setting, the company said. Link also volunteered to look at commercially-viable ways to increase the already large number of bank accountholders who can make free cash withdrawals at Post Office counters.
All major U.K. banks offer free cash withdrawals at Post Office counters as part of a basic bank Account package. The service is funded by the banks and supported by Link.
Download the full report here.
