MPs voice fears over future of free ATMs

Nicky Morgan MP made the approach to Sir Mark Boleat amid concerns that plans over the funding of cash dispensers could significantly reduce their numbers.

Link has said it has plans to reduce the charge card issuers such as banks and building societies pay in order to retain an extensive network of free ATMs for consumers.

Although trade body the ATM Industry Association has warned that such a move would result in “ATM deserts” as the network was streamlined, a consultation has recently been launched on the future level of a fee to be charged to card issuers.

The consultation plans include a reduction in fees over the next four years, from around 25p to 20p per withdrawal.

Ms Morgan wrote: “It seems intuitive that a 20 per cent reduction in the fee may mean some machines are no longer economically viable.”

Link is seeking views by tomorrow before a final decision on January 31, which will be implemented on April 1.

Stuart Mackinnon, the Federation of Small Businesses’ (FSB) external affairs manager for Scotland, said: “We can’t see Scottish communities lose yet more of their banking facilities. Both tourism hotspots and local high streets need cash machines to encourage local spending. Until we properly address Scotland’s mobile and broadband connectivity problems, cash will still be required to power many local economies.

“We know that bank branches are closing more quickly in Scotland than the other UK nations. Therefore, this sort of move could have disproportionate impact north of the border, especially on smaller firms in our rural communities.”