Cashpoint operator NoteMachine is to begin charging for withdrawals at 1,000 of its free-to-use ATMs. Shoppers will be charged 65p for each withdrawal, with the change to affect 15 percent of the free cash machines.
Bosses decided to introduce the charges after a 10 percent cut to funding for the company since 2018.
Steve Makaritis, NoteMachine chief executive, said: “Government legislation protects ‘access to cash’, but crucially fails to address the broken funding model that is forcing ATM operators to convert.
“Under current legislation, only a tiny fraction of ATMs are ‘protected’ – receiving the right level of funding to keep them operational on a free-to-use basis.
“Unless more funding is given, households will be left with a very small number of free-to-use ATMs.”
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NoteMachine already charges customers at 2,500 of its cash machines with fees first introduced in 2019.
Only 3,300 UK cashpoints have “protected” status which guarantees they will remain for customers to use.
The number of cash machines that don’t charge users has been dropping for years with the figure currently below 40,000.
Data from cash machine network Link showed there were only 39,429 free ATMs in the UK at the end of 2022.
However, information on the Link website states: “Around 95 percent of cash withdrawals are free of charge and at the majority of cash machines in the UK there is no charge for cash withdrawals when using a debit card or ATM card.”
The total amount of cash withdrawn at ATMs increased in 2022 compared to the previous years. Users withdrew £83billion in 2022 compared with £79billion in the previous year.
Information on the Money Helper website states that withdrawing funds with a debit card at a cash machine is “usually” free.
But the group warned Britons may be charged up to £5 for withdrawals from ATMs inside small shops, on garage forecourts or in nightclubs.
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Major providers including Lloyds Bank, NatWest, Halifax and Barclays are all closing outlets this year.
Some banks are attempting to mitigate the impact on local communities by continuing to provide a service in affected areas.
For example, Barclays Local provides in-person banking support in community locations and the group is also setting up banking pods across the UK.
People can access basic banking services at their local Post Office, such as making withdrawals, checking their balance and making payments.
