Government accepts legislation to introduce free cashback from retailers’ tills

Once the legislation has successfully passed through the House of Commons potentially thousands of shops could begin to offer the service, but it will not be mandatory for retailers.

In October 2020 Link and PayPoint began a trial to allow consumers to withdraw cash using the Link network from retailers’ tills without paying a fee or making a purchase. The trial is operating across 12 shops in four communities across the UK. The communities are Cambuslang (Scotland), Denny (Scotland), Hay-on-Wye (Wales) and Burslem (England).

Since launching, more than 12,000 cash withdrawals and 2,000 balance inquiries have been made with an average withdrawal size of around £29. This trial forms part of the Community Access to Cash Pilots, chaired by Natalie Ceeney, and is expected to end in October.

Link is set to reveal the next steps for a possible national rollout through the Link Scheme in due course following engagement with its members.

John Howells, chief executive at Link, said: “This is a very positive step and brings much-needed innovation in access to cash. Link expects that free ATMs will continue to be the most popular method for withdrawing cash and will be a feature of high streets and supermarkets for years to come.

“However, as consumers continue to increase their use digital or card payments, we need alternatives where ATMs may not be viable.”

ACS chief executive, James Lowman, added: “Over two-thirds of retailers offer cashback to customers, so we welcome the extension of retailers offer cashback without having to purchase products.

“A number of useful trials on extending the use of cashback without purchase are underway, and there is still much more we need to learn about how this can be offered securely and viably for retailers. We shouldn’t view cashback without purchase as a full replacement for a properly functioning and funded ATM network.”