MPs step in to preserve access to free ATMs throughout Britain
The network responsible for free-to-use cash points across Britain must ensure that every community maintains access to ATMs, a committee of MPs has said.
Responding to proposals published by the LINK network last month, Commons Treasury Committee chair, and Conservative Party MP, Nicky Morgan said any significant reduction in free cash machines would harm local economies.
In October, LINK opened a consultation with the 30 banks and building societies it represents regarding plans to reduce the 25p interchange fee to 20p. The network has claimed the changes would help protect the 55, 000 free ATMs it oversees, while also responding to a predicted fall in consumers? demand for cash for payments.
However, the plans were criticised by the ATM Industry Association (ATMIA), which warned that consumers could see thousands of currently free-to-use cash points either disappear or begin charging a fee.
The committee of MPs agreed that a 20 per cent reduction of the transaction charge could put many free ATMs under threat, and Morgan said it was intuitive that some machines will become economically unviable.
there have been concerns that the proposals could lead to ATM deserts? for communities. As the Bank of England’s chief cashier said, cash continues to play a key role for many, with 2.7m people in the UK reliant almost entirely on cash transactions, she added.
I have asked LINK for assurances that the proposals will preserve the existing geographic spread of ATMs, and will have no negative impact on financial inclusion.
The Association of Convenience Stores (ACS), a group representing Britain’s small shops, welcomed Morgan’s comments as a show of support to local business owners.
James Lowman, ACS chief executive, said: Free to use cash machines support not just the businesses that house them, but also other shops, markets and small businesses that still rely on cash for payment. Reducing interchange fees, payable by banks for their customers to use these facilities, could lead to some cash machines being removed from local shops.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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