LINK has today published the results of a survey of cash machines' compliance with LINK rules on the transparency of ATM surcharges.
Edwin Latter, LINK Card Scheme Director said:
"LINK is committed to full transparency of any charges made for cash withdrawals at ATMs. To enhance transparency, LINK introduced new rules on 1 July that include requirements for standard-wording signs on the outside of surcharging machines, as well as standard wording on the screen informing the customer of the exact charge applied. All charging machines must also ask the customer to confirm acceptance of the charge and offer the ability to cancel transactions without charge. LINK will revisit all none compliant machines early in the New Year and further sanctions will be applied for machines that remain non-compliant."
LINK commissioned a wide-ranging independent survey (undertaken in conjunction with GfK NOP) of compliance with these rules. Independent surveyors visited around 2,000 machines in October and November.
The survey found 98.4% compliance with LINK rules for on-screen warnings and 100% compliance with LINK rules on an option to cancel. Every machine surveyed stated the amount of the charge and gave the cardholder an opportunity to accept the charge or cancel the transaction without charge.
In a small but significant minority of cases machines did not, however, meet requirements for warnings on the casing of the machine. Similarly, some operators did not meet requirements for warnings on their signs pointing towards the machine. This non-compliance is disappointing, and the operators of these machines have been required to pay the penalties that LINK Members agreed should be payable. In all cases, operators have committed to bring non-compliant machines into line."
Improvements since the beginning of the year
A trial survey in May, before the new rules came into force, showed 36% of charging machines had neither a warning on the idle screen nor a warning on the casing of the cash machine. The October / November survey confirmed less than 1% of machines (9 ATMs) satisfying neither rule. Both in May and October / November all machines met the requirement to ask the customer to accept the specific charge before completing the transaction, or alternatively cancel the transaction.
In addition to the rules for surcharging machines, operators of free machines - who have every incentive to advertise that their machines are free - have invested considerable sums in prominent signs advertising free cash withdrawals. Some have chosen to apply green stickers, but others have chosen different strategies that better match their particular brand colours and design. All of these options comply with LINK rules.
Survey results
LINK surveyed cash machines' compliance with the following LINK rules:
Through the survey 13.2% of charging machines were confirmed not to comply with one or more LINK transparency rule. Full results were as follows.*
|
1.6% |
of charging ATMs were confirmed not to state the amount of the charge on the ATM screen before the card was inserted. In each identified case, the machine was made compliant within 24 hours of the Member being notified. |
|
100% |
of charging ATMs asked the customer to confirm acceptance of the specific charge or cancel the transaction. |
|
8.8% |
of charging ATMs were confirmed to give no indication on the body or casing of the machine that there would be a charge for making a cash withdrawal. |
|
0.8% |
of warning notices on the body or casing of the machine were not considered to be within the normal view or eye-line of someone using the ATM. |
|
0.1% |
of warning notices on the body or casing of the machine were not considered to be of sufficiently contrasting colour to the background. |
|
0.3% |
of warning notices on the body or casing of the machine were not considered to be in writing consistent with the size of other notices and signs on the body or casing of the machine. |
|
7.0% |
of signs directing cardholders towards a charging ATM were confirmed not to indicate that there would be a charge. |
|
1.3% |
of warnings on signs directing cardholders towards a charging ATM were not considered to be sufficiently visible. |
* Final figures may be slightly lower than these in the event of successful appeal against the reported non-compliance.
Consumer awareness of charges applied: where next?
LINK and its Members are not aware of any evidence that the new standardised signage rules are insufficient to prevent cardholders from unwittingly incurring charges. LINK Members have decided, however, to commission new and independent research into consumers' ability to distinguish charging and non-charging cash machines.
In addition to all LINK Members confirming their commitment to comply with the current rules, LINK Members today started work to consider what further steps could be taken to improve transparency of cash machine charges. The majority of members did not consider red and green signs a suitable solution for all, but will investigate the scope for further standardisation of warning signs while ensuring that they are easily visible regardless of the background colour of the machine and the operator's brand colours.
Notes
The number of charging cash machines continues to rise, with the vast majority in locations that previously had no cash machine. The proportion of transactions that are surcharged has, however, remained small. In the year to the end of September 2005, 96% of cash withdrawals were free of charge.
LINK publishes on its website information on the number of free and charging cash machines as well as data on trends in the number of transactions that are charged. See www.link.co.uk for details.
LINK operates the UK 's ATM network and sets the rules for participation in that network. LINK does not levy surcharges on transactions, or take a share in any surcharge made by ATM operators. LINK considers that surcharging is a legitimate business model that has widened access to cash in places where ATMs would otherwise not exist. Surcharges must, however, be transparent to cardholders.
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Background
Press Enquiries:
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Edwin Latter |
Graham Mott |
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John Pinniger |
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Information for Editors
LINK Interchange Network Ltd is the Company that provides electronic transaction management services on behalf of the UK 's largest financial institutions and other commercial organisations. The Company manages the Card Scheme and provides the technical and commercial services, including arranging settlement, which make ATM sharing possible on the significant scale now seen. The LINK ATM network is the world's busiest shared ATM network with over 55,000 cash machines deployed and over 101 million LINK-enabled cards in issue. The Company processed and settled over 2.5 billion shared transactions during 2004. It also manages transactions for the basic bank accounts that form part of the Post Office's universal banking services programme and has implemented an ATM prepay top up service on behalf of mobile phone operators. The Company is pursuing opportunities to use its proven, secure and reliable network infrastructure to support the development and implementation of wider transaction management services including the aforementioned services.
