STRATEGIC PARTNERS
February 27, 2002
LONDON -- Members of Link, the UK's not-for-profit shared ATM network, will vote on whether or not to allow surcharging at a Feb. 29 meeting, according to the Daily Telegraph.
Currently, there is an interchange fee of around 30p, often absorbed by banks themselves, allowing customers of other banks free access. However, as in the U.S., some banks charge their customers a foreign fee, which is hidden until it appears on their monthly statements.
Link's 40 members, including most major banks and building societies, will be asked to vote on a proposal to allow banks to choose, either to continue with the interchange fee or impose a surcharge.
If the resolution fails, Link could break up. And even if the resolution is passed, banks may continue to grapple with the issue. Under its terms, there would be no limit to the size of the surcharge.
Some members of Link are casting Barclays as the bad guy. After joining Link last summer, Barclays asked for the interchange fee to be dropped in favor of a surcharge. Barclays contends the current system is unfair, because 75 percent of cash machines are provided by the six biggest banks, providing free access to customers across the UK.
The biggest surcharge opponent is Nationwide, the largest of the UK's remaining building societies.
According to the Telegraph, a Nationwide spokesman called for the Link vote to be made public. "We will be issuing a press release, saying how we voted and invite everyone else to reveal how they voted as well," the spokesman said.
