Is your local cash machine no longer free?

At the present time the Link website homepage carries the headline:

10 YEARS OF IMPROVED ACCESS TO CASH
How we have helped to introduce free-to-use ATMs in nearly 1,900 areas across the UK

It does not surprise me that Link has omitted to tell us about the forthcoming imposition of fees for using machines that are currently free to use.

Why introduce charges for using ATMs when those who are in credit don’t generally pay a penny to use other services such as online banking.

I could probably manage without every having to use an ATM again but it concerns me that those who cannot or don’t wish to might soon be hit by charges to withdraw their money.

These commercially-provided ATMs, supported by LINK interchange fees (that are only reducing by 1p a year at most) are installed to make a profit for the providers. If they are not used enough then their capital and servicing costs need to be recovered somehow or they will be removed. Whether we like it or not that just seems a consequence of a change in consumer habits.

As far as I know this should only affect machines that are relatively local to others as the LINK scheme attempts to preserve free “protected” ATMs that are more than 1km apart by offering much larger interchange fees.

However there will be millions of people who live well out of walking distance of an ATM, and never have had that convenience. I’d like to see constructive proposals made to improve access to cash for as many people as possible, not just to preserve what exists. I believe other means of obtaining cash would be available with some positive thinking – from cash based business like shops, pubs, cafes….. who take in cash as part of their trading.

LINK says:
”The continuing adoption of new payment methods is reducing the demand for cash and therefore ATM withdrawals. The ATM deployment market is responding by reducing the number of free ATMs independently of the interchange reduction. LINK’s commitment is to ensure that coverage of the network is not reduced as a result of the changes made to interchange. We are also working to maintain coverage as a result in the decline in consumer demand, although ATM management and deployment is a matter that goes beyond LINK’s control alone. Protecting the level of interchange, and in some cases increasing the interchange payable, on machines in more remote and rural locations will help to ensure that these ATMs do not close. A reduction in interchange rates in busier urban centres has also been made as there is an over-provision of machines in some of these areas.

LINK has put in place specific arrangements to protect free-to-use ATMs more than 1 kilometre away from their next nearest free-to-use ATM. LINK is targeting all of these free machines in more remote and rural areas to remain open to preserve coverage, unless there is another source of cash access available or no consumer impact from closure. In 139 of these locations (click here to view), the free-to-use ATM is closed or has switched to surcharge (119 reported last month). 104 of these 139 locations have alternative free access to cash from the Post Office, relate to ATMs that were not in any case already accessible to the general public, or have security issues that make the site unsafe. The remaining 35 (27 reported last month) need replacing with another free ATM, and subsidies to open a new ATM will be provided by LINK. This report gives full details.”

The only time I use my local cash machine is to change PINs on new credit cards, which is quite a rare occurrence. It’s inside a shop and looks like a chargeable machine, but surprisingly charges nothing to withdraw cash. I haven’t used cash in the UK for over 4 years.

Like most Londoners, I have no need for cash. It’s odd that it’s Londoners who have the most free cash machines and don’t want cash, whereas those with the fewest free cash machines are in the countryside who do want cash.

As the number of cash withdrawals goes down and the fixed costs of operating cash machines remain the same, it is inevitable that the cost per withdrawal goes up, meaning that the fee paid by the card issuer to the cash machine operator no longer covers the cost of operating the cash machine, necessitating an additional fee to the card holder. Those who insist on using costly methods of payment should be prepared to pay the costs of using them. Cash is expensive to handle. The same goes for cheques, for which I believe the drawer and payee should both be charged rather than being subsidised by the majority of bank customers who stopped using cheques years ago. Look at Scandinavian countries, where hardly anyone uses cash or cheques. They have moved on and think outside the box instead of stubbornly refusing to change their ways.

It is possible to live a cashless life in the UK. Therefore I don’t see the problem with being charged for cash. A far greater problem is countries where UK residents visit, for example Thailand, where foreign cards are unreasonably charged for withdrawing cash, e.g. THB 200 (almost £5) and many businesses accept only cash. When looking at fees for withdrawing cash, I believe that Which’s focus should be on countries where UK residents need to use cash rather than at home where one can live very easily without cash.

To me it seems odd that people will generously support mega media corporations with large dollops of money in order to stream and download entertainment every week but will jib at having to pay a small sum in order to release some cash from their bank which has been holding it securely for them free from loss or pilferage and providing a range of other services of great usefulness. I acccept that it might not be the same people in both cases, but it’s a reflection on society’s priorities.

For modest cash requirements a monthly withdrawal would probably be sufficient and I believe most people could organise their life to enable a visit to a free ATM once a month at least when visiting a town centre or doing their main shop.

As LINK runs a Financial Inclusion Programme to ensure that all consumers have free access to cash it seems odd that Which? do not link to their work directly when discussing ATMs. The information LINK provide seems very relevant to me.
These links may be of interest to some:
https://www.link.co.uk/media/1424/v-96-link-scheme-ltd-change-control-method4-change-2019-l041_19-atm-footprint-report.pdf
https://www.link.co.uk/initiatives/financial-inclusion/

We live in ever changing times, moved on by technological innovation and with the added facility and increase in the use of contactless and other cards, ATMs are slowly being phased out in favour of card purchase as the decline in the need for cash proceeds inexorably to its demise.

There will inevitably be casualties along that journey and some will need a little help along the way, but I sincerely hope the changes will continue at a pace that will enable the vulnerable to adjust to new methods of coping in a society that seemingly is unable to halt its slow but sure progression towards a cashless
society.

I have never needed to use a pay-to-use ATM. I have never paid a credit or debit card surcharge fee and have even had surcharges waived when they have not been shown in details of payment methods. If I do have to pay then I will accept that because I’m not going to drive miles to find a free ATM, any more than I would drive miles to find a cheaper filling station.

However, thinking about those who are struggling – perhaps living on the state pension – having to pay a couple of pounds to withdraw money from an ATM would further strain their finances.