Treasury committee's Morgan warns ATM industry
The chair of Parliament's Treasury committee has warned banks and ATM operators against restricting access to fee-free cash as the industry considers changes that could reduce the network's funding.
Nicky Morgan said she was concerned a proposed reduction to the fee paid by card issuers to banks and other ATM operators would lead to fewer machines. She said the committee would question industry leaders if these concerns were not met.
The current 25p payment for each transaction funds the UK's ATM network. Morgan said it was difficult to see how the number of machines could be maintained if a proposed reduction to 20p per transaction takes effect.
She has written to Mark Boleat, who chairs the Link cash machine network urging him, banks and other ATM operators to come up with a viable plan. She said her committee had been told the consultation was being rushed and that the process was opaque.
Morgan has also written to the payment systems regulator asking her to step in if consumers face harm or if any party is not playing a constructive part in the consultation.
Morgan said: “As bank closures increase, so too does the reliance on free-to-use ATMs. The ability of consumers to access cash must not suffer. We’ll monitor developments closely. If there is a risk of unacceptable consumer detriment, the committee will consider taking oral evidence from Link, individual banks, and independent ATM deployers.”