News

UK trade group asks merchant members to hold off switching to fee-based ATMs

July 26, 2018

Following the decision by the U.K. Link ATM network to curtail its ATM fee-cutting plan, the National Federation of Retail Newsagents has asked its members to "desist from swapping free-to-use ATMs to pay-to-use machines" in their premises and to suspend trials of "lite" fees of 50–60 pence.

Some retailers were carrying out — or at least considering — swap-outs as a means to keep cash machines in their stores without incurring the losses expected to stem from Link fee reductions.

The NFRN call comes as a sort of wait-and-see measure as Link decides how to proceed with additional planned cuts.

Link initially expected to reduce fees from 25 pence to 20 pence in a series of four annual cuts. The first was enacted earlier this year. The second is scheduled for January 2019, and Link currently intends to go forward with that cut. The third cut has been eliminated and the fourth is currently on hold.

"Many of our members were concerned that the cuts would have made many ATMs unprofitable so we are pleased that the Link board has decided not to proceed with the cut to 21.25 pence in January 2020, and that the fourth reduction, which takes fees down to 20 pence, is on hold, pending a review," NFRN National President Mike Mitchelson said in a press release. "However, it is disappointing that next January's reduction, from 23.75p to 22.5p, will still go ahead and we would ask Link to look again at this."