As hundreds close, is this the death of the free cashpoint?

FREE cash dispensers are disappearing at a record rate across Scotland.

There are now fewer than 6,000 – with nearly one a day vanishing from our cities, towns and villages.

The number of free-to-use automated teller machines (ATMs) fell by 221 between January and last month – a decline branded ‘alarming’ by campaigners.

They warn that the losses will have ‘severe consequences’ for both businesses and communities, notably for the elderly and people living in rural areas.

There are now only 5,999 free cashpoints, according to the ATM network Link.

The shutdowns come amid cuts to the fees that operators receive from banks for cash withdrawals.

Across the UK, the number of free cashlator points fell from 54,500 to 53,200 within the first six months of this year. Link said the closures are fuelled by a drop in ATM use.

Ged Killen, Labour MP for Rutherglen and Hamilton West, is campaigning against the axing of the machines and has introduced a Bill to ban ATM charges.

He said: ‘Free-to-use ATMs are closing at a record rate, despite warnings and calls for further protections to Link and the PSR [Payments Systems Regulator, the industry watchdog].

‘Any reduction in access to free cash will have the greatest impact on small businesses, the least well-off and rural communities.

‘The banks who make up twothirds of Link’s membership are determined to force the pace of change rather than this being set by the public.’

Federation of Small Businesses Mike Cherry said: ‘Reduced access to cash via ATMs and bank branches is giving card payment companies free rein to increase charges on small firms.’

The ATM fees cut was pushed through after lobbying by banks, as they battle to boost profits. Critics warned it would make thousands of dispensers unprofitable and force closures – but regulators refused to intervene.

Now, the PSR says it will seek to stem the closure of isolated machines. Jenni Allen, of consumer group Which?, said: ‘The rate at which free-to-use cashpoints are closing is alarming.

‘Link is failing on its commitment to protect access to cash for people in remote areas. The reguchairman was warned these changes to the ATM network could have severe consequences yet waved them through without proper scrutiny. PSR must intervene.’

PSR managing director Hannah Nixon said: ‘The requirements we intend to place on Link will help ensure Link achieves its commitment to protecting the geographic spread of free-to-use ATMs.’

Link chief executive John Howells said: ‘ATM volumes are falling 6 per cent year-on-year.

‘It’s critical we protect cash access for those who rely on it, and maintain a comprehensive network of ATMs.

‘The report today is part of our commitment to monitor the situation and do whatever it takes to ensure people continue to have the free access to cash they want.’