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Free cash machine network under scrutiny | Free cash machine network under scrutiny |
(35 minutes later) | |
Measures to keep cash withdrawals free for millions of bank customers are to be explored by a special committee. | Measures to keep cash withdrawals free for millions of bank customers are to be explored by a special committee. |
The Link network operates 70,000 ATMs in the UK, with 39 members including banks and building societies. | The Link network operates 70,000 ATMs in the UK, with 39 members including banks and building societies. |
Some banks with a large number of cardholders are thought to be unhappy about the fees they pay. | Some banks with a large number of cardholders are thought to be unhappy about the fees they pay. |
The new working group "will to explore a way forward for the sustainability of the scheme" and aimed to report later this year, Link said. | The new working group "will to explore a way forward for the sustainability of the scheme" and aimed to report later this year, Link said. |
Break-up? | Break-up? |
The full committee met at Canary Wharf in London on Thursday. | The full committee met at Canary Wharf in London on Thursday. |
At the centre of the dispute are the so-called interchange fees. When a customer of one bank uses a cash machine belonging to another bank, the customer's own bank pays a fee to the operator, in the region of 25p. | At the centre of the dispute are the so-called interchange fees. When a customer of one bank uses a cash machine belonging to another bank, the customer's own bank pays a fee to the operator, in the region of 25p. |
It is thought that banks with a large number of cardholders feel they are being unfairly penalised. | It is thought that banks with a large number of cardholders feel they are being unfairly penalised. |
Fears have been expressed by some in the industry that a breakdown in the current agreement could result in more cash machines charging a fee. | Fears have been expressed by some in the industry that a breakdown in the current agreement could result in more cash machines charging a fee. |
Ron Delnevo, executive director of the ATM Industry Association, said: "It is a stay of execution because we need to see what the outcome of the working group is. | |
"We need a solution that is fair to all the parties and it needs to be sustainable. We don't want to be doing this every year. We need a long-term solution." | |
At the moment about 75% of ATMs are free to use. | At the moment about 75% of ATMs are free to use. |
In 2016, consumers made around 2.1 billion cash withdrawals at Link machines amounting to £129bn. The average withdrawal value was £69. | In 2016, consumers made around 2.1 billion cash withdrawals at Link machines amounting to £129bn. The average withdrawal value was £69. |
Link said the network costs £1bn to run. | Link said the network costs £1bn to run. |