One in seven of UK's cash points could start charging for withdrawals

A total of 35% of free-to-use cash machines across the UK could start charging or be removed the Link network do not agree over fee charges, according to the ATM Industry Association (ATMIA).

Link, which consists of 39 members, is currently debating how much members should charge each other to allow their customers to withdraw cash, with some members wanting this interchange fee to be reduced.

Failing to reach an agreement could lead to 8,000 ATMs shutting down or starting to charge for withdrawals according to the ATMIA.

The cities most at risk of ‘cash deserts’ are London, Belfast, Glasgow, Birmingham, Sheffield and Cardiff. Other possible hard hit areas include Devon, Hampshire, west Wales, Northern Ireland, Northumberland and Aberdeenshire.

As things stand 97% of the 70,000 cash points in the UK do not charge for withdrawals. Around 23,600 of the 54,000 free machines are provided by independent suppliers.

According to the lobby group, around £1.4bn of cash withdrawn each year would be affected by the possible changes. The exact charge has not be clarified but the average fee at the moment is £1.70.

Average monthly withdrawals from the ATM network currently stands at just under £10bn.

Executive director for Europe of the ATMIA Ron Delnevo said: “Independent cash machines play a vital role in allowing all of us convenient access to cash.”

“With the question remaining over whether some banks will be willing to pay the true cost of providing ATMs, we still risk thousands of these cash points disappearing from the most vulnerable communities."

Chief executive of Link John Howells said: “Many of my independent members are now calling on the regulator and government to be part of the review process, and to ringfence existing ATM interchange to make sure the current free to use estate is not undermined. This is key to securing the free access to cash that has so well served the public.”

“While commercial perspectives may vary, every Link member was clear at the meeting that ensuring the future of the Link Network and the cash access needs of UK consumers remains their number one priority.”

Andrew Tyrie, the Conservative MP and Chair of the Treasury select committee responded saying that if the issue is not resolved the government will have to step in.

“Widespread charging would be of considerable concern, particularly in rural areas and poorer urban neighbourhoods. Link now have an opportunity to sort it out. If they don’t, the Treasury committee will almost certainly need to investigate.”