Not entirely sure how it works, but I guess the major banks see that allowing people to access their money from any cash machine at any bank for free is better than charging for the service. Sure a few years ago that some banks were going to charge for withdrawals from their machines but using a different bank's card, but this quickly went out the window.
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Not entirely sure how it works, but I guess the major banks see that allowing people to access their money from any cash machine at any bank for free is better than charging for the service. Sure a few years ago that some banks were going to charge for withdrawals from their machines but using a different bank's card, but this quickly went out the window.
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button_boxer
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I can't remember where I read this but I believe that LINK cash machine operators are allowed to either charge a direct fee to the customer or receive an interchange fee from the customer's bank, but not both. Most bank-owned machines opt for the interchange fee on the basis that what they pay for their customers to use other banks' machines is offset against what the other banks pay them vice-versa. There are a few private machines that are free to use, for example a couple of the machines at Derby station, presumably they are subsidised by the owner of the premises.
It'd be interesting to see the figures for how much the interchange fees bring in and find the break-even point where the volume of transactions would make a free machine more profitable than a low-use charging one, but it appears you have to sign an NDA to get hold of them...
It'd be interesting to see the figures for how much the interchange fees bring in and find the break-even point where the volume of transactions would make a free machine more profitable than a low-use charging one, but it appears you have to sign an NDA to get hold of them...
Cheers for that. Thinking quite simply, you'd expect the bank with the largest amount of ATMs in the UK to make a profit from other bank customers using their machines.
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