The Big Issue: Cash Point Charges Hammer the Poor

I know how this pig feels

I am an occasional Big Issue buyer.  It's worth the cover charge of £2.00: once I have bought a copy I can relax and walk through the town centre without feeling guilty about dodging the dozens of BI vendors touting their wares on every street corner. Sometimes I do actually read it, and there are often some interesting stories. Last week I came across this one, which I believe originated in an investigation carried out earlier this month by a reporter at the Liverpool Echo.

Apparently his research revealed that cash point customers making withdrawals from machines in poorer areas of Liverpool are likely to be charged over the odds. Of the 446 ATMs across the city, 35% make a charge for withdrawals.  In affluent areas only 17% are fee-charging, but in deprived areas, such as Toxteth, a whacking 81% of ATMs charge for cash withdrawals.  With the ongoing program of closures of small Post Offices and local bank branches, it is getting harder and harder to find a place to withdraw cash free of charge.  I believe this is also a major problem for those who live in rural areas, as well as the deprived inner-city dwellers identified by the Echo report.

How do the banks justify the charges?

Well, they point out that there are costs involved in providing a cash point service.

Such as leasing the site, cleaning and maintaining the machinery and paying somebody to travel to each ATM to keep it stocked with cash.  The more remote the location, the greater the cost to the ATM provider.

Commenting on the original story on the Liverpool Echo website, one local resident says

‘I live in L5 and know exactly what it's like. The local post office used to have a free cash machine outside, but after it got ramraided 3 times, they gave up.’

Reading such comments, you begin to understand why some free facilities are being closed down.

What can customers do to avoid the charges?

Let’s face it , some retailers find any easy money-making opportunity hard to resist, and  have fee-paying ATMs installed on their premises for that reason. If you don’t want to be charged for the privilege of laying your hands on your own cash from your own bank account: vote with your feet!  Go elsewhere.

If there is really no charge-free cash point within reasonable walking distance, there is always the option of getting cash-back at your local supermarket checkout; a convenient, free and secure alternative to the street-corner ATM. I have also heard on the grapevine that Liverpool City Council is considering installing fee-free machines in its one-stop shops: that would be a great service for local residents and council tax payers in the city.