Nearly 1,700 free-to-use cash machines in the UK started charging for withdrawals in the first three months of the year, according to consumer group Which?. The majority of these changes occurred in March, driven by cuts to the interchange fee that ATM operators receive from banks each time a machine is used.
Link, the network that oversees ATMs, began reducing the fee from 25p to 23p per withdrawal last year, aiming to protect the network. However, operators like Cardtronics and NoteMachine warn that further conversions to fee-charging machines are likely. NoteMachine's chief executive Peter McNamara said the company is considering introducing fees at up to 4,000 of its 7,000 machines unless the fee reductions are reversed.
The loss of free ATMs has hit communities hard. Ashleigh Cooper from Hebden Bridge, West Yorkshire, saw the number of cash machines drop from six to two. He said, 'It causes real problems especially on bank holidays. There are no banks here anymore.' Which? reported that charges range from 50p to £1.99, angering users like Anita Brakewell from Blackpool, who said being disabled means she cannot easily reach a free machine.
Bank of England figures show 2.2 million people are almost entirely reliant on cash, while a 2018 Access to Cash study found over eight million would struggle in a cashless society. Gareth Shaw, head of money at Which?, called for a regulator to oversee the rapid changes and protect vulnerable users.
