Fears grow ATM firms will soon start charging for cash withdrawals

A consumer watchdog has warned that unregulated owners of hundreds of ATMs throughout the country could soon start charging for cash withdrawals.

Bank of Ireland and AIB sold 1,200 ATMs between them to independent operators in 2021.

At the time of the sales, commitments were given that there would be no additional charges imposed by the new independent owners for withdrawing cash for a period of three years – but that is up at the start of next year.

Michael Kilcoyne, chairman of the Consumers’ Association of Ireland lobby group, said there was now a real fear of new charges being imposed on top of bank fees.

“The two big banks sold a large number of their ATMs to independent operators, who are not regulated.

“The risk is that they will decide now to introduce charges, so you could be talking about €1 every time you withdraw cash or it could even be €3,” he said.

Mr Kilcoyne said there was an urgent need for independent operators of ATMs to be regulated by the Central Bank.

He said any changes to the charges and fees banks imposed on customers for using current accounts would have to be approved by the Central Bank.

But there is no regulatory regime for independent ATM operators.

In early 2020, AIB sold its network of more than 500 non-branch ATMs in the State to global cash management corporation Brink’s.

It is understood a three-year moratorium was agreed on charging fears as part of the sale by AIB.

That three-year period is up now.

The bank applies a charge of 35c for withdrawals, aside from customers who meet criteria for fee-free banking.

In December of the same year, Bank of Ireland sold 700 non-branch ATMs to US-based electronic payment services group Euronet.

As part of the sales contract, it was agreed that Euronet could not raise withdrawal fees for three years – but that period is up soon.

The machines sold by both AIB and Bank of Ireland are largely based in retail outlets.

And the independent operators have hundreds of other ATMs apart from the ones they bought from the banks.

The Department of Finance-commissioned ‘Retail Banking Review’, published last November, recommended that independent ATM operators and cash-in-transit firms be regulated.

It said: “The review team has noted the effective operation of the cash system relies on a number of cash-in-transit (CIT) firms and a high proportion of ATMs are owned and operated by unregulated non-bank providers, also known as independent ATM deployers (IADs).

“CIT firms and IADs are of critical importance to the distribution of and access to cash across the country, and currently neither are subject to authorisation or supervision by the Central Bank.

“The review team recommends that both are brought within the regulatory perimeter of the Central Bank.”

Finance Minister Michael McGrath has committed to legislation to regulate independent ATM operators and cash-in-transit firms.​

A spokesperson said: “The Department of Finance is currently in discussion with the Central Bank of Ireland as well as relevant industry players (ATM operators and CIT companies) to determine the most appropriate level of regulation to be imposed on these entities.”

Brink’s and Euronet were contacted for comment but did not reply.

Reporting On: www.independent.ie