Which? calls for a rethink over free ATM changes
An “urgent review” of plans to cut the fees paid by banks to UK cash machine operators has been urged by consumer rights group Which? It warned the proposals to reduce the amount paid could lead to operators closing free-to-use machines.
Which? warned people, especially in rural areas, could be left isolated.
However, the UK’s largest cash machine network, LINK, said it would only reduce fees when there was another cash machine within a kilometre.
LINK administers the interchange fee, which is paid by card issuers (banks and building societies) to ATM operators, who are often independent companies such as Cardtronics and Notemachine.
It argues that more than 80% of the UK’s 54,000 free-to-use ATMs are within 300m of each other, making the system inefficient.
LINK has announced a reduction of fees from 25p to 20p per withdrawal over four years in order to stop the growth in ATM numbers, which has occurred despite declining consumer demand for using cash.
Critics fear the change could lead to fewer free ATMs as operators decide they are not worth the trouble.