New figures released today by LINK, the body that oversees the ATM network, has shown that there has been a 2% decline (1,300 ATMs) in the free-to-use ATM network.
Between February and the start of July 2018, the number of free-to-use ATMs reduced from 54,500 to 53,200.
ACS chief executive James Lowman said: “Today’s figures reinforce the need for the Payment Systems Regulator (PSR) to closely monitor the impact that cuts in ATM interchange fees are having on access to the free to use ATM network which is essential to local shops, their customers and surrounding businesses, especially in rural areas. It is welcome that the PSR is developing a Specific Direction that will hold link to its commitment to ensure financial inclusion.”
LINK’s latest figures show the following protected ATM closures between 1 February 2018 and 1 July 2018:
- 12 that were not accessible to the public (e.g. in a private business premises)
- 43 where a Post Office offering free cash withdrawal is available within 1km
- 21 that require further investigation or are targeted for replacement
The All-Party Parliamentary Group on Small Shops held an evidence session in Parliament about the impact of LINK’s interchange fees cuts on the ATM network for businesses and consumers. ACS used this meeting to call for transparency from LINK about its monthly reporting on ATMs and the Financial Inclusion Programme to the Payment Systems Regulator. ACS also wrote to Nicky Morgan MP, chair of the Treasury Select Committee, calling for both the Committee and the PSR to clarify the number of cash machines that would be protected by the 1km proposal, expressing concerns that removal of cash machines could have a negative impact on communities.
LINK had originally planned to cut interchanges to ATM operators from 25p to 20p over the next four years with the first reduction of 1.25p (5%) taking effect on 1st July 2018 and the second reduction is expected to take effect on 1st January 2019. However, the third reduction, planned to take effect for January 2020 has been cancelled, while the fourth reduction due in for January 2021 has been put on hold, pending a review next year.
The 2018 Local Shop Report has revealed that 46% of convenience stores have a free to use cash machine. Cash also remains an essential method of payment for customers in convenience stores, 76% of customers pay by cash.
LINK’s full report on ATM closures is available here: https://www.link.co.uk/initiatives/financial-inclusion-monthly-report/
