ATM operator terminates ‘unsustainable’ machines

Independent retailers have been left ‘blindsided’ by Cashzone as it pulled out out “unsustainable” ATMs with less than two months’ notice.

Better Retailing understands the operator began issuing letters at the start of the year to stores that “consistently fail to meet volumes required”. The firm blamed a “continuing rise in interest rates” putting “unprecedented pressure on ATM deployers”.

Cashzone went on to explain that it had attempted negotiations with Link, “to increase the fees the banks pay us when their customers use our machines to access their cash to reflect this increased cost”. “This has meant many of our machines have become unsustainable,” it said. “The situation has been exacerbated by the decline in transaction volumes experienced across the UK ATM network.”

Affected sites are being told that they will be contacted by Cashzone to organise a suitable date and time to collect the ATM. Umesh Bathia, owner of U&S Food & Wine in Farnham, Surrey, told Better Retailing he had his machine removed in February, despite attempting to negotiate with Cashzone. “I asked them if we could reduce the rate to get more customers,” he said. “Over eight years ago, it was a free-to-use ATM and it was booming, but as time went on, Cashzone imposed charges. When they applied a £1.50 charge to each transaction, the usage really slowed down. “I understand if they aren’t making money, they need to make changes, but I wish they’d spoken to us to see if there was a way we can work together to find a financially viable solution.”

When asked what impact losing the ATM has had on his store, Bathia explained: “We are definitely worse off. Although the usage slowed down, people still used it, especially the elderly who want to be able to balance cheques and don’t rely on their smartphones to do this. “Having an ATM also helps us compete, and without it, people just go elsewhere.”

It’s not the first time Cashzone has come under fire by independent retailers. In recent years, the firm has been criticised for cutting commission rates by 65%, after a slowdown in withdrawals during the Covid-19 pandemic. Other store owners who’ve recently had a Cashzone ATM installed have expressed concern after learning of the raft of terminations.

Nathalie Fullerton, of One Stop Partick in Glasgow, said: “I only had a Cashzone ATM installed last month. To hear they are getting rid of ones with relatively no notice is quite alarming and not very fair. You adapt your property and hope it benefits you, and when this doesn’t happen, it’s stressful.” Better Retailing approached Cashzone, asking them to clarify what volume requirements stores needed to meet to avoid losing their ATM, and it failed to provide an answer.

However, a spokesperson for NCR Atleos, owner of Cashzone, said: “As a nonbank for-profit independent owner of the world’s largest retail ATM network, NCR Atleos regularly monitors operational costs and interchange fees across our Cashzone ATM network in the UK and makes necessary adjustments.” A spokesperson for Link added: “We do receive regular requests from members to change the fees [both up and down] and Link always considers these carefully. The fees are reviewed at least annually to take account of a number of factors, including an assessment of the costs of ATM operators and the maintenance of a satisfactory geographical spread of free-to-use ATMs across the country.”

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