End of the free ATM era, with one in five now charging for cash

ONE in five ATMS now charge customers to withdraw cash, consumer watchdog Which? says and is calling for an urgent review.

It comes as thousands of machines are being shut down. Which? said it has “significant concerns” and has written to the Payment Systems Regulator (PSR), calling for it to conduct an urgent market review on the potential impact on consumers.

The UK’S biggest ATM network Link is seeking to reduce its £1billion annual running costs, which could see the loss of thousands of free-to-use cashpoints.

The industry lobby group, the ATM Industry Association, has estimated one in five cashpoints will disappear from Britain’s high streets within four years as a result of Link’s proposed cuts.

Which? said the concerns about the future of free-to-use ATM access come alongside bank branch closures, which have seen more than 700 shut this year.

The call by Which? follows a consultation recently launched by Link into the fees paid by card issuers such as banks and building societies to ATM operators.

The interchange fee funds the freeto-use ATM network. Link has decided that these fees should be cut by 20 per cent over the next four years.

Ron Delnevo, chief executive of the ATM Industry Association, has previously warned the move will lead to the closure of 10,000 free machines.

One provider said the five per cent a year reduction in fees would force it to close all its free cashpoints by the end of the four-year transition period. At present there are around 55,000 free cashpoints in the UK. In its letter to the PSR, Which? says the proposals should not be allowed to proceed without sufficient scrutiny from the regulator.

It said a wider review should consider potential alternative options for accessing cash and include a full examination of the ATM market. Gareth Shaw, a money expert at Which?, said: “Significantly reducing this network could have a real impact on consumers, who might be left struggling to access the cash they need – and so we must see scrutiny from the regulator.”

Last month, the Treasury committee wrote to Link to seek assurances over the accessibility of free-to-use ATMS. Link has said the plans will help to retain an extensive network.

John Howells, chief executive of Link, said: “I don’t see any justification for 10 ATMS on one high street.”

Latest figures reveal that 2.7million people in the UK were reliant almost entirely on cash last year. Rural areas will be hardest hit; in the South West, Scotland, and the South East, 44 per cent, 40 per cent and 33 per cent of cashpoints are under threat, according to the ATM Industry Association.