LINK proposes new measures to rebalance UK’s ATM network

A series of measures designed to maintain and rebalance the UK’s ATM network – shifting incentives from deploying ATMs in city centres to rural and less-affluent communities have been announced by LINK.

The main changes are a phased reduction in interchange (the fee card issuers pay ATM operators) beginning with a 5% (around 1p) reduction from 1st July 2018. The position will then be reviewed annually taking into account the impact on consumers.

All ATMs one kilometre or more from the next free ATM will be exempt from any reductions in interchange.

In addition an enhanced subsidy of up to 30p (tripling the current 10p) will be paid wherever needed to ensure that free ATMs remain in areas that could not otherwise sustain them.

“LINK will do whatever it takes to retain free access to cash for all communities. It will publicly monitor the whole country; report on free ATM availability; and highlight any areas where free ATM availability is lost. It will then use the strengthened Financial Inclusion Programme to ensure that all communities retain free access to cash,” the firm said.

LINK’s decision is in response to new data which showed the current incentives were driving ATM deployers to focus on city centres - 80% of free-to-use ATM are now within 300 metres of another free-to-use machine.

LINK chief executive John Howells said: “LINK is committed to protecting free access to cash. The UK has a near record number of ATMs, yet the recent growth has led to the majority of these being placed in busy areas where there simply is no need for a new ATM.

"The combination of a reduction of the interchange, with the significant strengthening of the Financial Inclusion Programme, will begin to rebalance the network, making sure we protect and install new ATMs in locations that really need them.”

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