The NFRN has welcomed the decision by LINK, the UK’s main cash machine network, to drop plans to cut the fee that banks pay each other when one of their customers withdraws cash from a rival’s machine in January 2020 and put on hold the fourth reduction in January 2021 but is calling for next January’s cut to be suspended too.
NFRN National President Mike Mitchelson said: “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 21.25p in January 2020 and that the fourth reduction, which takes fees down to 20p, is on hold, pending a review. 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.
“At the same time we would request that suppliers now desist from swapping free to use ATMs to pay to use machines in independent retailers’ premises and suspend trials of “lite” fees of between 50p and 60p.”
Back in January, LINK announced a phased 20 per cent reduction in Interchange rates over four years, from around 25p to 20p. The first cut was implemented at the beginning of this month (July) when the ATM interchange fee was reduced from 25p to 23.75p. On Monday (July 16) ,and in response to a six per cent year-on-year fall in the volume of ATM transactions, the LINK Board announced that the next reduction in January 2019 would go ahead but that it had decided to cancel the third reduction, due in January 2020, and put on hold the fourth reduction, due in January 2021, pending a further review next year.