PSR Review of the Structure of LINK Interchange Fees

The PSR has published a Call for Views (CP19/5) on the structure of LINK interchange fees.

The paper examines how the structure of the interchange fees works now, what other options there could be and how the interchange fee structure could work to provide better outcomes. Currently, each time a customer uses his/her debit card at an ATM that does not belong to the banks that issued the card, a fee is paid to the ATM operator.

In particular the PSR is interested in hearing views on –

  • the description and framework for considering the costs of providing ATMs and the value they provide,
  • whether there are any other factors the PSR should take into account when analysing the incentives to provide ATMs,
  • what impacts the existing LINK interchange fee arrangements, and
  • what structure of interchange fees would have appropriate incentive effects going forward.

The deadline for comments is 5 July 2019.




Angie Bamboulis