On Wednesday 11th March the Bank of England announced a 0.5% reduction in Base Rates. This would normally reduce the fee paid by banks and building societies to ATM operators for a cash withdrawal by around 4-6%*. However, after careful consideration and particularly in the light of COVID19, the LINK Board has decided that the fee will remain unchanged for the time being.
John Howells, LINK CEO commented, “Access to cash is more important than ever at the moment so this is the right decision to make sure consumers can still get the cash they need.”
The LINK ATM network continues to operate to its usual high standard and is well prepared to support UK consumers as normal through the coming months. LINK recommends that people take the usual hygiene precautions for contact with surfaces whenever they are out and about using ATMs, spending cash, or making payments with cards and phones - washing your hands as soon as possible and refraining, if possible, from touching the eyes, nose and mouth.
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Editors Notes:
* This fee is called “interchange” and would be reduced because a fall in interest rates reduces the opportunity cost of cash, ie how much interest would otherwise have been earned from the value of the cash held in the ATMs.
The next scheduled review is for January 2021 and LINK will announce its decision closer the time.
