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Parties told to 'engage constructively' to preserve free-to-use ATMs in UK

December 21, 2017

British MP Nicky Morgan, chair of the governments Treasury Committee, has written to Link chairman Mark Boleat urging parties involved in the dispute over ATM interchange fees "engage constructively" to arrive at a solution that preserves the nation's free-to-use ATM network.

Link is proposing a reduction from 25 pence to 20 pence in the fees that banks pay for transactions made by their customers at nonbank machines.

Independent ATM operators in the U.K. have warned that the reduction, which would be phased in over a period of four years, would lead to a loss of up to 20 percent of the U.K.'s free-to-use ATMs, which now account for approximately 55,000 of the nation's 70,000 cash machines.

According to a report by The Mirror, Morgan wrote that free ATM access is now particularly important to consumers due to the closure of bank branches throughout the U.K.

She warned that if Link cannot not hammer out a compromise to the fee issue," … or if consumer access to cash is at risk, the [Payment Systems Regulator] should not hesitate to take appropriate action."

A final decision on the proposed interchange fee cut is set for Jan. 31.