ATMs are likely to close due to reforms while rural machines are expected to get some protection. The UK’s main cash machine network announced a series of reforms that could lead to some ATMs closing – but should protect most rural & remote machines.
Link, that runs a network of around seventy thousand ATMs, has announced that from 1st July there will be a 5 percent (about 1p) reduction in the interchange rates – fee card issuers pay ATM operators when machine is used. This will be followed by 3 more annual reductions of 5 percent — every subject to review.
These changes could be leading to reductions in the number of ATMs, as the machines would become less financially viable to be run by the operators.
To stop rural & remote ATMs disappearing, if there isn’t another free-to-use ATM within a kilometre the fees would remain at the same level they are.
An extra subsidy of up to 30p –tripling the current 10p– will be paid by card issuers for a small number of ATMs in areas that couldn’t otherwise sustain them, to ensure that most remote cash machines don’t close.
The plans were 1st proposed by Link in November 2017, but have been confirmed last morning.
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Why does Link make these changes?
Link says, its decision is in response to the new data which showed current fees were driving ATM companies to focus upon city centres, rather than further rural areas.
It says 80 percent of free-to-use ATMs are now within three hundred metres of another free-to-use machine.
The network published an impact report assessing what the proposed changes would mean, which found that maintaining current arrangements will lead to reduction in free ATMs as consumer are demanding for cash withdrawals falls, with a concentration of free ATMs in busy centres.
Cash payments have dropped by 33 percent  in the last decade, and a further fall of 43 percent is predicted in the next 10 years.
However, its impact report does also concede that 2 large independent ATM companies has suggested the proposals would lead to a major reduction in number of free-to-use cash machines.
Chief executive John Howells says: “Link is committed to protecting free access to cash”.
He also says that the UK has near record number of ATMs, yet the recent growth has led to majority of these being placed in busiest areas where there simply is no required for a new ATM.
The combination of reduction of the interchange, with significant strengthening of the Financial Inclusion Programme, would begin to rebalance the network, making it sure we are protecting and installing new ATMs in locations that really need them, says John Howells.
