News

UK Link member discussions said to portend ATM network downsizing

October 19, 2016

Members of Link, the ATM network that drives about half of the machines in the U.K., are discussing "multilateral interchange arrangements" that could involve a reduction and redistribution of cash machines across the country.

According to a report by The Guardian, the final result could be a considerable downsizing of the network's 70,000 locations.

However, the alternative might be worse for ATM users: "There are fears the system could break up unless agreement can be reached," the report said.

Financial institutions and independent ATM providers make up the network that costs a total of 900 million pounds ($1.1 billion) annually to operate. Members of the network are compensated for the surcharge-free use of their machines at a rate of 20–30 pence (25–37 cents) per transaction by the card-issuing institution.

The report said it was Lloyds Banking Group that put forward the proposal to review and rebalance machine locations as a way reduce network costs, noting that some localities have too many cash points and others too few.

In recent years, a major reduction in the number of bank branches across the U.K. has left the local cash machine as the only banking facility in some smaller villages.