There is growing recognition, including among legislative bodies, of the need to support cash as a mode of payment, for reasons of both fairness and the resilience of economies. But a mission to ensure that cash remains widely available, accessible and accepted as a means of payment demands attention to the primary access point for cash: ATMs.

Interchange fees, which are designed to compensate ATM deployers for operational and provisioning costs, have remained stagnant, despite inflationary pressures and rising transaction costs. The result? ATM networks, especially in locations with lower transaction volumes such as rural areas, are under threat.

Without reform, there is risk that ATMs will be plentiful in locations with higher cross-border transaction revenues, but scarce in remote areas. There are already examples of this happening, as noted in research from the University of Warsaw that show outdated fee structures threaten the viability of ATM networks in lower-volume locations in Poland, presented at the recent ATMIA Europe and Emerging Markets 2024 Advocating for Cash, ATM Security, and Payment Choice Conference in London.

To ensure broad access to cash, “It is important for all stakeholders—industry, regulators, and card networks—to collaborate on developing a sustainable model that ensures ATMs can continue to provide essential cash access, especially in underserved and remote areas,” noted Lonnie C. Talbert, CEO of the ATM Industry Association (ATMIA).

In a recent warning from the ATMIA, it called for a reassessment of the domestic revenue model, specifically the interchange fee framework. Some countries have taken steps to address the problem by increasing domestic interchange fees, including France and the Netherlands, and the ATMIA urges International Card Organizations to accelerate similar changes across Europe, emphasizing the need for a consistent approach to ensure the long-term viability of ATM networks.