Which? seeks ‘urgent review’ of free-to-use ATM network

AN urgent review of the free-to-use ATM network is needed to make sure people are not left struggling to access cash, according to consumer campaigners.

Consumer group Which? said it is concerned that a row over the funding of the network could lead to widespread closures of cash machines.

It has written to the Payment Systems Regulator (PSR), asking it to step in and conduct an urgent market review.

The PSR should fully evaluate the potential impact on consumers – millions of whom rely on the free-to-use network of ATMs to access cash – it said.

No holes in the wall and no banks leave towns without cash

Which? said the concerns about the future of free-to-use ATM access come alongside bank branch closures – raising issues around consumers’ ability to have easy access to their money free of charge.

The consumer group said that last year 2.7 million people in the UK were reliant almost entirely on cash.

The call by Which? follows a consultation recently launched by the UK’s cash machine network, Link, into the interchange fees paid by card issuers such as banks and building societies to ATM operators. The interchange fee funds the free-to-use ATM network.

The consultation plans previously outlined by Link include a reduction in interchange rates over the next four years, from around 25p to 20p per withdrawal.

Link has said the plans will help to retain an extensive network of free ATMs for consumers.

But trade body the ATM Industry Association has warned that “ATM deserts” could be created.

In its letter to the PSR, Which? said it has “significant concerns” about the impact for consumers and does not believe proposals should be allowed to proceed without sufficient scrutiny from the regulator.

It said a wider review should consider potential alternative options for accessing cash and include a full examination of the ATM market.

Gareth Shaw, a money expert at Which?, said: “Significantly reducing this network could have a real impact on consumers, who might be left struggling to access the cash they need – and so we must see scrutiny from the regulator.”

In November, the Treasury Committee wrote to Link, to seek assurances over the accessibility of free-to-use ATMs.

Link has previously said the number of cash machines in the UK is currently at near-record levels, with more than 70,000 ATMs across the country, around 80% of which are free for consumers.