News

UK ATM operators to make fee disclosures more prominent

July 30, 2003

LONDON -- British ATM users will be warned of any fees they might face when withdrawing money before they insert their cards into the machines.

According to a report in the Guardian, the Link ATM network said that beginning in April 2004, customers must be informed before they insert their card into a fee-charging ATM that a charge may be imposed for cash withdrawals.

(See related story ATM fees: What do they know and when do they know it?)

Following a campaign by the Co-op Bank and Nationwide in 2000, most financial institution members of Link decided to scrap all ATM charges -- foreign or "disloyalty" fees and surcharges. However, the number of machines managed by independent operators -- most of which collect surcharges -- has grown. Fees are now charged at some 11,000 ATMs, nearly a quarter of the Link network.

Nationwide and some others contended that ATM users were often unaware of the fee until near the end of a transaction when they were given the option to terminate the cash withdrawal.

According to the Guardian report, Link and its Network Members' Council will decide in August whether fees warnings will be displayed as a notice on the machine or as an on-screen message before the transaction begins.

"Today's decision represents a victory for everyone who uses cash machines and I'm delighted that common sense has at last prevailed," said Nationwide chief executive Stuart Bernau. "Any cash machine provider who fails to have warnings in place by April 1 next year would look foolish."

Research by Sainsbury's Bank released earlier this month said that around 34 million cash withdrawals will be made this year from the 11,000 ATMs that apply surcharges, generating more than £42.6 million ($70 million U.S.) in charges. (See related story Brits to pay an estimated $70M in ATM fees in '03)