Scots bank customers pay out £9.5m to withdraw their money
SCOTS bank customers are now paying well over £9 million a year to withdraw their own money as free cash machines close at a record rate.
New figures show that Scots are estimated to have forked out £9.5m in 2019 alone – nearly double the figure for 2018 when banks took in £5m.
The reason for the large increase is that more cash machines charge users for withdrawals as banks cut the amount they pay the companies which run ATMS.
Previously, banks paid an “interchange fee” to these providers for each withdrawal.
But LINK, the ATM network, has started to cut these. This has resulted in cash machines being axed or ATM providers passing the cost on to the public in charges ranging from 95p to £2 per transaction.
Banks and card issuers have already saved £120m in Scotland alone since 2018 because of the dramatic decline in the number of cash machines, according to new data from LINK.
The consumer organisation Which? has described the figures as “sheer mismanagement” of the cash landscape.
The SNP’S Ronnie Cowan, the Inverclyde MP, has also met officials from UK Finance and LINK to discuss “the need for action”.
The cost to Scots for getting access to their money comes as Which? found that the amount paid by consumers across the UK increased by £29m to £104m in 2019, as many free machines vanished or were converted to charge fees.
Last month, The Herald revealed that one in four of
Scotland’s cash machines are now charging customers to take their money out, with the number soaring by 68% in just one year.
According to LINK data, there were 1,396 pay-to-use ATMS in Scotland at the end of last year –
565 more than in the previous year.
There were 4470 non-charging ATMS at the end of November, with 743 disappearing in a year.
Scottish consumers have already seen more than 400 bank branches close since 2015, making it one of the worst-hit areas in the UK. Often, the cashpoints are also axed.
Banks who have made the cuts consistently say that it is the result of customers preferring to use online, mobile or telephone banking while usage of branches has fallen.
Last week, a further 15 bank branches felt the weight of the axe, as Bank of Scotland announced new cuts. It had previously closed 95 branches between 2014 and 2019.
Concerns about funding for cashpoints were first highlighted in December 2017, prompting fears this might lead to a cut in free withdrawals.
Which? said: “Two years on, these new figures show the sheer mismanagement of the cash landscape, which is seeing people cut off from cash or forced to pay significant fees to access it.”
The consumer group is reiterating its call for the Government to intervene with legislation to protect free access to cash.
The Government says it expects commitment from the industry to protect access to banking and cash for those who need it.
Officials say they cannot determine banks’ commercial strategy in response to changes in how customers bank.
John Howells, chief executive of LINK, said: “People don’t like paying to access their money and
LINK agrees with them. As people use less cash, many ATMS will become less economically viable which means some ATMS will switch to charging.
“What’s important is that we continue to have a broad, extensive Uk-wide, free-to-use network. LINK is committed to ensuring every UK high street has free cash access via ATMS and Post Offices. We are also keen on initiatives that will incentivise retailers to provide free cashback for consumers.
“Communities with poor access to cash are coming to LINK through our ‘community request an ATM’ scheme.”