NoteMachine retailers are to see monthly commission levels drop by hundreds of pounds, as the ATM provider has proposed a reduction in rates.

The company sent letters to stores in January, stating it would not be able to offer retailers the same commercial terms.

It said the proposals were due to a reduction in “overall transaction levels in the market and a reduction in the fees we receive from Link”.

The new rates proposed were 5p per transaction (up to 350 transactions per month), 7.5p (301 to 750 transactions), 10p (751 to 1,250 transactions), 12.5p (1,251 to 1,500 transactions) and 15p (1,501 or more transactions).

Nine out of 10 payments to be cashless within decade

The firm was criticised by affected retailers, who told Better Retailing they would be examining other choices of ATM provider. One store owner, who asked not to be named, added: “I reminded them we’re in a contract where we get a fixed rate of commission per year. I would lose several hundred pounds a month.

“They can have the machine back when you consider the amount of space it takes. I can just give cashback.”

A NoteMachine spokesperson said: “NoteMachine has long been campaigning for the funding issues affecting the ATM operating model to be addressed, and we are sure to always explain these challenges to our customers to keep them updated on any changes that may affect them.

“Unfortunately, without intervention from Link, there is very little we can do. However, ATMs continue to remain an important footfall generator for stores up and down the UK.”

Read more news and articles about NoteMachine ATMs