STRATEGIC PARTNERS
December 30, 2001
LONDON -- The Post Office in the UK is planning to introduce ATMs in thousands of branches across the country and charge customers for using them, according to a report in the Evening Standard.
The projected fee would be between 50 pence and £1 and would apply to branches in villages and small towns.
The Post Office is currently working on implementation of a "universal" banking system, which would allow customers of the UK's 10 biggest banks and Nationwide building society to withdraw money at Post Office counters without charge. Most Post Office customers would therefore have a choice whether to line up at the counter and get cash for free or pay to withdraw funds from an ATM.
Building societies other than Nationwide and newly-converted banks such as Bradford & Bingley are not part of the universal banking system, so accounts holders at those institutions would have to pay to withdraw cash from the Post Office.
Several hundred free ATMs are already installed at larger post office branches across the country. However, the Post Office says free usage of ATMs is only viable if a minimum number of transactions are processed each day. In smaller branches, the number of transactions would not reach that level.
The Post Office plan comes after banks and building societies agreed to make their machines free to all users, following public displeasure with plans to charge certain customers for withdrawing money.
Banks incurred the wrath of consumers and Government ministers when they announced their intention to charge noncustomers up to £1 for cash machine usage. After months of intense criticism, they agreed to drop all charges at ATMs.
There are around 18,000 post offices in Britain and 95 percent of people live less than a mile away from a branch, making them by far the most accessible commercial outlets in the country.
