Card Machines to Close

Posted by Kirstie Brown in Personal Finance on 30 January 2017 - Kirstie is a Senior Credit Analyst at checkmyfile.

Consumers are being warned that the UK could lose 35% of its free cash machines unless a deal is secured to cover the annual £1bn running costs.

A system known as ‘Link’ currently allows customers of all banks to use other providers’ cash machines free of charge, however the future of this is in question. The Link network currently operates 70,000 ATMs in the UK (75% of which are free), with 39 members including Banks and Building Societies.

Banks in the UK say that they pay too much for the use of independent cash machines from providers which include PayPoint and Note Machine. Independent companies own 57% of the UK’s 70,000 cash machines – these tend to be located in supermarkets, shops and newsagents. Each time a transaction is made, the individual’s bank pays just under 30p to the cash machine company.

The ATM Industry Association (ATMIA) have said that information received from independent operators at the centre of the row meant that more than 8,000 of the current 54,000 free-to-use ATMs were at risk of being turned off or charging customers to withdraw cash.

This could result in millions of people in rural areas of the UK losing the ability to access cash on a day-to-day basis, making them more reliant on ‘cashless’ payments like bank cards, online transactions and smartphone payments. Areas such as the South West, Scotland and the South East, where 44%, 40% and 33% of cash points are under threat, will be hit the hardest as these regions have suffered the most bank branch closures in recent months. Some of the major cities would also lose out if these free ATMs were lost. London would lose the most machines, while Belfast, Glasgow, Birmingham, Sheffield and Cardiff would also suffer.

This especially affects the aging population, as branch closures and a lack of ATMs would leave them financially excluded from society. Simon Bottery from Independent Age says, "Elderly people are not ready for this. The most obvious issue is that they tend to be less mobile so they can't shop around for a free cash point. In order to avoid paying fees they may pass on cards to friends or family who are more able to get to a free cash point, however this not a good idea for people as it opens them up to financial abuse."

Members of Link, including banks and independent ATM providers met on Thursday at Canary Wharf in an attempt to resolve the dispute, but currently this issue remains ongoing.

Check Your Multi-Agency Credit Report

30 Day Free Trial

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article

Impacts of late payment on your credit card agreement

We’ve all done it before – had that mad panic when we’ve forgotten to pay a bill. But what happens if you do forget to pay your credit card by the monthly repayment date?

Published on 20 Feb 2017 by Kelly Luff

Full Article


We have loads of great customer reviews