News

Cardtronics UK says Link fee cut would force ATM fleet reductions, surcharges

December 14, 2017

If the U.K.'s Link ATM network proceeds with a plan to reduce fees paid by banks for off-us transactions, the nation's largest ATM provider, Cardtronics U.K., will have to downsize its current fleet of 20,000 cash machines currently operating across the country.

The company said as much in a statement cited in a report by the BBC and numerous other U.K. news outlets:

We can confirm that there are specific plans to close some of our machines due to the prospect of lower Link interchange payments as early as next year, combined with rising cost pressures which include the recent introduction of polymer notes, the need for software upgrades as well as increasing crime prevention and other compliance costs.

Should Link's proposals to slash interchange be implemented in their entirety, the free-to-use ATM model in the U.K. will become unsustainable and Cardtronics U.K. will be forced to convert a much more significant number of currently viable free-to-use ATMs to pay-to-use or even remove ATM sites altogether.

This will be especially true for rural communities, where operating costs are often higher than in densely populated urban areas, regardless of the type of location, be that pubs, local shops or street kiosks.

Notemachine, the U.K.'s second largest IAD with approximately 10,000 cash machines has said that it, too, will be forced to shut down unprofitable ATMs.

Link has proposed to cut payments from 25 pence to 20 pence (33–27 cents) per transaction, with the reduction phased in over a four-year period.

For its part, Link claims that rationalization of U.K. ATMs is necessary to ensure a continued robust network of cash machines.

Members of Parliament have questioned the Link plan and are looking into its implications for consumers. The watchdog group Which also has asked the government to conduct an urgent review to determine how consumers will be affected.