STRATEGIC PARTNERS
March 21, 2002
In an effort to push customers into using only its ATMs, Abbey National is issuing a surcharge of £1.50 if they use a rival's machine, according to an article in The Guardian.
Abbey National's move follows that of Barclays, which was the first UK bank to issue a surcharge to non-customers who used Barclays' ATMs. Non-customers who decide to use a Barclays cash dispenser will pay £1. This recent initiative to surcharge precipitates a movement in Europe to open up the market to more ATM deployment, similar to what has occurred over the past three years in the U.S.
Abbey National customers who choose to use another ATM will pay £1.50, which will mean up to £2.50 if they use a Barclays machine. Before now Abbey customers were allowed to use the Link network for free.
Until recently, most of the major UK banks were cooperating together concerning the surcharge under the Link network. However, Barclays' move will most likely prompt other banks to re-consider the issue of surcharging, which will impact free ATM access in the UK.
As for now, Barclays doesn't intend to charge its customers for using a rival's ATM.
