News

UK Link unveils 'super premium' fee for ATMs in underserved areas

January 29, 2019

As of April 1, ATM operators using the U.K. Link network will be eligible for a new "super premium" that will increase payments for a cash withdrawal to as much as 2.75 pounds ($3.62). Premiums will vary in size, depending on transaction numbers at an ATM.

According to a Link press release, the premium will be made available to operators of approximately 3,500 potentially eligible free-to-use ATMs located 1 kilometer (0.62 miles) or more away from the nearest free-to use ATM, or those that fall under Link’s Financial Inclusion Programme, which safeguards free-to-use ATMs in remote and deprived areas. 

It is expected that, initially, approximately 1,000 ATMs will be eligible to receive a premium. This number will likely increase as ATM cash withdrawal volumes continue to fall, the release said.

Currently, operators of eligible ATMs receive a top-up subsidy of up to 30 pence through Link’s Financial Inclusion Programme. This payment is in addition to the interchange fee paid to operators by card issuers. 

Super premiums also will be made available to deployers of newly installed free-to-use ATMs in areas within the Financial Inclusion Program where cash was not previously available, or to operators that convert existing pay-to-use ATMs in those areas to free-to-use machines.

According to link, the 2.75 pound payment is larger than the fee available to pay-to-use ATM operators and will discourage these operators from converting free ATMs to pay-to-use. In fact, Link expects that some pay-to-use machines might become free-to-use in order to take advantage of the super premiums.

"While many consumers are turning to alternative payment methods such as contactless cards, it is vital we continue to provide free access to cash to those who need it," Links Chief Executive John Howells said in the release. "These premiums will further safeguard ATMs in remote and less well-off areas and the Link Board will regularly monitor their effectiveness and in the context of the recommendations shortly due from the independent Access to Cash review and make changes as appropriate."