Link ATMs move to reduce level of fees paid by card issuers at machines across UK

The UK's cash machine network Link has revealed plans on Wednesday to reduce the fees paid by card issuers to ATM operators, as consumers’ demand for cash payments falls.

Link said it was consulting members and the Link Consumer Council on proposals to include a 20% reduction in interchange rates over the next four years, from around 25p to 20p per cash withdrawal, in order to retain an extensive network of free ATMs for consumers as they increasingly move to alternatives such as contactless and online payments.

The number of cash machines in the UK was currently near record levels, the company said in a statement, with over 70,000 ATMs across the country and around 80% free to use.

The announcement came as data from UK Finance predicted that the number of cash payments will decrease by 43% to 8.7bn payments over the next ten years, with the total value predicted to dip by 23% to £185bn in 2021.

LINK’s CEO John Howells spoke of the company's commitment to preserving the free use of cash machines.

"LINK is committed to maintaining an extensive network of free-to-use cash machines. Free access to cash is vital for UK consumers and LINK intends to maintain this for many years to come.

"The interchange rate was previously set by ATM industry participants, as part of the LINK Network Members Council. Responsibility for setting the interchange rate has now moved to the independent LINK Board, which has a clearly defined public interest remit, in order to meet regulatory requirements on the governance of payment systems2.

"The views of LINK Members and the LINK Consumer Council are being sought by 30th November 2017 and it is expected that the Board’s final decision will be published by 31st January 2018 and implemented by 1st April 2018."