Debate over the future of ATMs in the UK has intensified ahead of a cut in the fee operators receive from banks. From Sunday, the fee paid each time a cash machine is used will be cut, with further reductions due each year until 2021. Link, which oversees cash machines, has argued that the move is vital for the sustainability of the network. Consumer group Which? claims that 300 ATMs are closing a month, but that analysis is disputed by Link. Convenience stores and the ATM industry have also expressed concerns about cash machines disappearing. What is happening?

The fee paid to operators, known as the interchange rate, will be reduced from 25p to 20p per withdrawal. This change will be made over the course of four years, starting on Sunday. However, the fee will be unchanged for free-to-use ATMs which are 1km or more from the next nearest cash machine. Those in remote locations could receive an extra subsidy, particularly if they are threatened with closure.

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