New cashpoint rules come into force this weekend and this is how it will affect you

New cashpoint rules come into force this weekend  and this is how it will affect you

New cashpoint rules which come into force on Sunday are set to make it harder to withdraw money for free at ATMs.

Cash machines across the country are already closing at a rate of almost 300 every month, according to a new study by consumer watchdog Which?

Now from 1 July, the fee that banks pay ATM operators per withdrawal is being reduced – and it is expected more will close or will start charging customers a fee.

Link, the shared network of ATMs in the UK, is to cut the fees operators receive from banks when the cashpoints are used.

The fee – known as the interchange rate – is currently around 25p and will be reduced by around 1p with the first cut. It will eventually fall to 20p.

While this might not seem like much, operators have stated that some machines will no longer be financially viable to run.

So this will mean more and more consumers will be charged to get cash out.

Link said the effect was expected to be a modest decline in the number of ATMs in areas where they are heavily concentrated but with no diminution in the overall geographical coverage.

This will be reviewed annually.

Which?’s study found that almost 1,500 machines closed between November last year and April, which it said was a near six-fold increase from a steady rate of fewer than 50 closures a month since 2015.

The investigation found that machines in rural communities were at least as badly hit as urban areas – down 2.1% and 2% respectively – across the UK.

Which? said such closures would hit rural communities especially hard at a time when bank branch closures were also gaining pace.

It said the closures accelerated as operators began to learn of the plans from Link. It has called on the regulator to urgently intervene and halt the cuts until a thorough analysis of the impact on communities is conducted.

Which? Money editor Harry Rose said With hundreds of cashpoints closing every month, we have serious concerns that, far from protecting consumers’ access to cash, Link’s plans risk destroying it.

These cuts could see millions of people who rely on cash in their daily lives struggling through these closures – with severe consequences for many communities and businesses.

The impact of these cuts is already clear – with machines closing at a frightening pace.

The regulator must act now to stop further closures and ensure that consumers aren’t suddenly stripped of their access to cash.

A spokesman for Link said Over the last 10 years cash payments have fallen by 33%. During the same period free ATM numbers have grown 18,000 (50%).

This disconnect is not sustainable and needs addressing now to protect Link and future access to cash for consumers.

Which? has suggested that ATMs have fallen by 1,500 in the period between November and April, however Link can confirm that during this period the number of free-to-use ATMs actually increased.

More importantly, coverage of free-to-use machines improved over this period as forecast by Link, with the net number of postcodes with free access across the UK increasing by five, including one in Scotland.

· England 1187 machines lost (115 rural losses -2.1%, 1072 urban losses -2.1%. Overall -2.1% loss with network at 56,471 as of 31st March 2018)

· Northern Ireland, 36 machines gained, (2 rural losses -0.5%, 38 gained in urban areas, +2.5%. Overall +1.7% gain with network at 2120 as of 31st March 2018)

· Scotland 146 machines lost (40 rural losses, -2.9%, 106 urban losses -2.1%. Overall 2.2% loss with network at 6,367 as of 31st March 2018)

· Wales 75 machines lost (16 rural losses, -2.1%, 59 urban losses, -2.3%. Overall -2.3% loss with network at 3,254 as of 31st March 2018).

· Overall UK network as of March 31st 2018, 68,483 cashpoints, down from 69,901 (21st Nov 2017). This figure includes the Channel Islands and the Isle of Man.

News Source MirrorNews

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.

We use cookies to personalize your user experience and to study how our website is being used. Learn More About Cookies Okay I Got It