News
U.K. banks, operators to roll out more fee-free ATMs
December 12, 2006
WORTHING, England - Link Interchange Network Ltd. subsidiary, Link Scheme, on Dec. 12 announced that it will change the rules that provide incentives to ATM operators that deploy fee-free ATMs in low-income areas.
ATM landlords, like convenience stores, public authorities and community centers, are asked to help Link identify new locations for surcharge-free cash machines.
According to a news release, the agreement was made after six months of workled by the ATM Working Group, overseen by Treasury Committee chairman John McFall MP, and was established by former Treasury Minister Ivan Lewis MP. Combining Link and government data, the Working Group determined that low-income areas need more fee-free cash dispensers. The group found that most low-income areas had only fee-charging ATMs or no ATMs at all.
The group estimates that the placement of around 600 new free machines would address the need in those areas.
The group's report also calls on local authorities, MPs and other local community leaders to help find suitable sites for free machines. Guidance about what might make a site suitable may be found on Link's Web site.
Scheme members also agreed to a set of enhanced rules for signage at fee-charging ATMs. All charging ATMs now will move toward a standardized external sign in prominent and large font on a standard white or yellow background. Signs on the screen of the ATM also will be enhanced.
Banks and building societies have agreed to offer extra money to ATM operators that deploy machines in communities. The agreement uses Link's interchange pricing arrangements to support public-policy financial-inclusion objectives and to maximize the consumer benefit.
Link members, including Bank of Ireland, Bank Machine Ltd., The Co-operative Bank, HBOS, HSBC, Royal Bank of Scotland, Sainsbury's Bank, Tesco Personal Finance and TRM Corp., have agreed to install new machines in the target areas.
"Every one of Link's 49 member banks, building societies and independent operators is contributing to this initiative," said Edwin Latter, director of Link Scheme. "The industry is making a big investment in expanding free-of-charge access to cash."
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