| Comment | The short-ish answer is that ATMs are usually operated by a specific bank, but they're (almost) all connected to the same network - the Link network.
Whenever you use an ATM that isn't operated by the bank your account is with, your bank pays an 'interchange fee' to the other bank, for each service that the ATM performs. (This is why, incidentally, if you try and withdraw cash without checking your balance, the ATM will usually prompt you to check your balance - they get more interchange fees as a result). This is how most ATMs make money - the other main method is via fees when withdrawing money with foreign cards, but this isn't too common outside of tourist hotspots.
Across the Link network, this fee was set at 25p. However, in January 2018, Link announced plans to lower the fee from 25p to 20p over the next three years. The fee is currently around 22.5p, although the planned reductions have been paused pending review. |
|---|