ACS (the Association of Convenience Stores) has welcomed the latest statement from the Financial Conduct Authority (FCA) on the importance of access to cash in communities.
The FCA have announced that from 18th September 2024, banks and building societies will be required to provide “reasonable additional cash services” when closing branches or making other changes to existing cash services. These may include banking hubs, ATMs, and Post Office facilities.
In response, ACS has welcomed the assurance in the FCA’s statement that cashback without purchase should not be relied upon as the sole cash access point as it may only be available at the discretion of the retailer, largely due to the costs attached due to delivering this service.
ACS has long been campaigning for access to cash to be addressed as it plays an important role in the convenience sector, and also provides financial flexibility. Around half of all store transactions are still being conducted using cash, and 40 per cent of shops currently host ATMs. With the closures of banks and other services across the UK, these stores have become essential for the public to be able to access their money.
“We strongly welcome the prioritisation of access to cash in communities by the FCA, as it plays a huge role in the convenience sector," said ACS chief executive James Lowman. "ATMs are one of the most essential services provided by convenience stores, particularly in rural areas where bank branches are increasingly scarce."
“We believe that a full review of ATM interchange fees is needed to align with the FCA’s efforts to protect access to cash. We need to ensure that the financial constraints faced by retailers who want to provide this service to customers are addressed so that customers are able to pay for what they need, retailers are able to provide for their communities free from financial constraints, and there are fewer free-to-use ATMs switching to pay-to-use as a result.”
Ross Borkett, Banking Director at Post Office said: “We are delighted to see the publication of the new access to cash regulations to give consumers and businesses more certainty around the future of cash in the UK. Post Office will continue to play its role at the heart of the nation’s cash infrastructure, with Postmasters across the UK providing easy access to everyday banking within every community. The last few months have seen Post Office handle record amounts of cash for customers right across the UK”.
The full FCA statement to the consultation on Access to Cash can be found here. ACS have also published a response to the original consultation here.
