In January 2018, LINK announced a phased 20 per cent reduction in Interchange rates over four years, from around 25p to 20p. The first reduction in Interchange of five per cent took effect on 1st July 2018 and the second five per cent reduction will take place on 1st January 2019. Following a six per cent year-on-year fall in the volume of ATM transactions, the LINK Board has 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.
John Howells, Chief Executive of LINK said: “LINK is committed to maintaining the UK’s extensive coverage of free-to-use cash machines for many years to come. However, many consumers are turning to alternatives to cash more quickly than expected and usage of ATMs is now dropping at 6% per annum. LINK will therefore adjust interchange to maintain free-to-use coverage in line with our commitments to the public and to our participants. LINK will continue to monitor the cash machine network carefully and will not hesitate to make further changes as needed to protect UK consumers.”