Press Statement: Treasury Select Committee Report on Cash Machine Charges

Published on 31 March 2005

Statement by LINK Interchange Network Ltd.

31 March 2005

LINK welcomes the report from the Treasury Select Committee on Cash Machine Charges and the acknowledgement that it makes of the additional transparency that LINK has brought to charges at Cash Machines, whilst recognising there is more to do.

LINK has been in the forefront of providing transparency on customer charges and ever since Cash Machine charges were permitted customers have always been told of the precise amount of the charge, and been given the opportunity to cancel the transaction.

To increase transparency still further, in April 2004, LINK introduced Rules to require that customers should be warned of charges as they approach the Cash Machine and before they insert their card. After six months’ operation, LINK reviewed the operation of this rule and introduced enhanced rules on signage that come into force in July 2005.

At the end of 2004, LINK also introduced a graded series of sanctions, covering fines, disconnection of Machines (with the ultimate sanction of expulsion from LINK) that could be introduced in the event of non-compliance with signage rules. LINK has also introduced a comprehensive series of initiatives to monitor compliance with Cash Machine signage rules, the first of which will commence in April 2005

LINK provides the infrastructure that enables customers to withdraw cash from any Cash Machine (and not just those operated by their own bank). LINK operates within the regulatory parameters set out by the Office of Fair Trading (OFT) under Competition Law. It is forbidden from having any role in the siting of ATMs, whether or not a charge is made, and the level of customer charges.

LINK looks forward to continuing constructive dialogue with consumer groups and other organisations to improve the operation and transparency of the UK’s ATM network.

-ends-

For More Information:

Howard Aiken
LINK Interchange Network Ltd
Tel: 01423 356 000
Mobile: 07850 233 854
Email: haiken@link.co.uk
John Pinniger
Primeword Communications
Tel: 020 7738 6000
Mobile: 07050 052 934
Email: johnpinniger@primeword.com

Information for Editors

LINK Interchange Network Ltd manages the UK’s ATM network, the world's busiest shared ATM network, providing 101 million debit and credit cardholders in the UK, with access to 55,234 cash machines. LINK 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.

Charging Transparency Resolution

That with effect from 1st July 2005:

  • all surcharging ATMs must carry a message on all screens in the ‘idle’ sequence before a card is inserted, stating that ‘This machine will charge you up to £xx.xx for LINK cash withdrawals’.
  • all surcharging ATMs must carry external signage that says ‘This machine will charge you for LINK cash withdrawals’. This sign must be:
       
    • within the normal eye line close to the ATM screen, and
    • use a font size that is consistent with that used for similar information and of at least font size 14, and of contrasting colour to the background.
  • where there is signage away from a surcharging ATM that directs towards its presence and/or any other signage of A3 size or greater, the sign must include the words ‘This machine will charge you for LINK cash withdrawals’. The font size used and the colour and background must be such that the message is clearly visible to anyone reading the sign.

And further that:

  • LINK undertake periodic sample surveys of all ATM signage and idle screens in randomly selected geographical areas, and report incidences of non-compliance;
  • such surveys be commenced as soon as is practicable to determine compliance with all the rules on ATM signage (ie not limited to warnings about charging) applicable at the time;
  • In the case of a persistent non-compliance, sanctions such as fines, a refusal to allow the Member to install any more ATMs, disconnection of the non-compliant ATMs, or all the Member’s ATMs to apply.
Back to top