Threat to rural cash machines lifted as firm U-turns on fees

THOUSANDS of isolated cash machines have been saved from closure following a public outcry.

The big banks had demanded a cut to the fees they have to pay when one of their customers withdraws money from a machine owned by an independent operator.

It was feared the proposals would make swathes of ATMs unprofitable and force them to shut down.

But in a victory for the Daily Mail, the industry has backed down – and pledged not to reduce the fees for lone machines more than a kilometre from other ATMs.

The crisis began when the Link network, which oversees Britain’s 70,000 free ATMs, said it would reduce the so-called interchange fees banks pay to independent operators from an average 25p to 20p per transaction.

But the independents warned that this could force them to either close machines or start charging for withdrawals to cover their costs. Campaigners warned as many as 5,000 towns and villages might lose their free machines, causing misery for the small businesses and vulnerable people who depend on easy access to cash.

The plans were sharply criticised by Federation of Small Businesses chairman Mike Cherry, who warned that ‘a threat to the cash machine network is a threat to local growth all over the UK’.

But Link now says it is ‘resolutely committed to protecting cash access’. It has bowed to pressure and said the fee change will not apply to machines which are on their own, with no others within a 1km (0.6mile) radius.

The Link network said: ‘Link’s independent board is guided in everything it does by its public interest remit and Link is resolutely committed to protecting cash access and maintaining the geographical coverage of free-to-use ATMs.

‘The board would therefore like to announce that regardless of wider changes to interchange it will protect all free-to-use ATMs which are a kilometre or more from the next nearest free-to-use ATM. These ATMs will still be subject to normal contractual and business pressures but by protecting the interchange at these sites these ATMs should not need to be removed as a result of a general reduction in interchange rates.’

It comes as the Prime Minister warned that High Street lenders must not forget ordinary people.

More than 1,000 branches are being closed by the big banks this year, and bailed-out Natwest owner Royal Bank of Scotland had announced plans to axe another 259 in recent weeks.

Lenders claim they are cutting back because more and more people are using the internet instead. But in Parliament yesterday Theresa May said this excuse was simply not good enough.

‘Of course more people are banking online,’ she said. ‘This is having an impact, but we do want to ensure that all customers, especially vulnerable ones, can still access over-the-counter services.

‘That’s why we’ve established the access to banking standard, which commits banks to carry out a number of steps before closing a branch, and the Post Office has also reached an agreement with the banks that will allow more customers than ever before to use Post Office services.

‘So we recognise the importance of this on communities and have acted in a number of ways.’

Campaigners have pointed out that the cuts to bank branches have made cash machines more vital than ever.

‘Committed to protecting access’