There is currently much discussion between Link cash machine network members about the cost of running ATMs. There is talk of about a quarter of the network introducing charges instead of subsidized free withdrawals.
If more machines started charging would this reduce your cash usage and make you use your card more?
Yes but I rarely use cash as it is. Still like to see contactless in more places although it is steadily improving. A lot of supermarkets seem to finally be getting around to supporting it. Also need to see smaller shops drop minimum card payments.
Doubt smaller shops will drop minimum spend or charge until banks change the pricing structure for their terminals. Smaller shops a) pay more than the discounted charges paid by huge retailers, and b) smaller shops have less profit to write off the cost than someone like Tesco or W H Smith
In the UK I rarely use cash other than where there is a minimum spend or cards are not accepted, say non league football turnstiles or small cafes
.lWould plan to make a say £30 withdrawal weekly at a “free” ATM, another reason to keep one if my heritage bank accounts active.
There are payment processors offering better fees out there now. I suspect most small shops don’t know about it or can’t be bothered to switch.
I have started to see quite a few that didn’t accept card payments at all use iZettle and Palpal Here
With their cut about 2.75% it will have to wait until it drops to about 1% for many small businesses to consider
It was a few years ago mind but I got some quotes for a card machine for a small retail shop and ended up haggling down to like 17p for debit and 1.4% for credit cards.
Most of the quotes were many multiples of this and I don’t doubt there’s many small businesses getting ripped off but when they try and pass it off on to me (or sob story reasoning on cash only), I assume they’re lazy/ignorant and go somewhere else.
I’ve seen a few places start to use iZettle. If only I could persuade my local chip shop I could cut my visits to the cash machine by about half!
My chip shop is on Just Eat for deliveries so I order online with my Monzo card and select collect instead of deliver
For context, I expect this is the news story that Richard had seen, before posting this topic -
it’s worth noting that Monzo’s absorbing this fee at the moment -
At the centre of the dispute are the so-called interchange fees. When a customer of one bank uses a cash machine belonging to another bank, the customer’s own bank pays a fee to the operator, in the region of 25p.
The legacy banks can balance out these fees because they’re receiving payments from other banks, for other bank’s customer’s use of their ATMs & vice versa whereas obviously Monzo isn’t, as it doesn’t provide ATMs.
It would make me a sad panda, really. I made at least 3 ATM withdrawals a month:
- pay for shared lift, in cash (it crossed my mind to get driver to set up Monzo, but it would feel weird)
- twice ish, cash to pay for sandwiches at work
I rarely make any more than that.
Since I make withdrawals only to pay for stuff I can’t pay with card - to answer your question @anon44204028 - no, it would not make an impact in my scenario, I can’t use card more, because I’m already using it wherever I can.
If there were charges, I’d basically switch to cashing out max* I can in one day and storing it in a sock at home. Hardly elegant solution.
*if it’s flat fee. Not applicable for % fees.
Another offender with regular coral card for displaying the charge warning and language screen.
Not seen a warning like that in ages, but then don’t use ATMs very much now either.
First time getting out cash in ages, needed it to pay someone back and they asked for cash not a bank transfer.