News

FIs' spat over Link Network fees could end up costing consumers

January 19, 2017

A squabble over fees paid by Link Network member banks could result in financial institutions across the U.K. charging customers for cash withdrawals, according to a report by The Guardian.

Currently, 97 percent of cash withdrawals from machines on the Link Network are surcharge free. The network is supported by fees paid by card-issuing financial institutions.

The fee is calculated by dividing the cost of running the network — approximately 900 million pounds ($1.1 billion) annually — by the number of transactions made.

Total costs are highest for card issuers whose customers are heavy off-us ATM users. Some or these issuers are pushing for a reduction in fees, setting off the spat.

If Link members are unable to reach an agreement in a meeting next week, some ATM deployers might leave the system and begin charging cardholders for withdrawals, The Guardian said.