One in six shoppers (16 per cent) don’t know about a scheme that allows people to request cash back at the till in local convenience stores without needing to make a purchase or pay a fee, states a recent survey.
The cashback without purchase scheme was introduced last summer as a measure to protect people’s access to cash at a time when an increasing number of bank branches and ATMs were closing. However, new research from Which? has found that many shoppers are either not aware or not using the scheme because they find it “inconvenient” and a “security risk”.
The scheme operated by LINK – the UK’s main ATM operator – is available at 2,000 shops that use Paypoint as their payment service provider. Paypoint services tend to be available in grocery stores (such as Londis, NISA and SPAR) and independent local shops.
The scheme allows people to withdraw exact amounts up to £50, rather than being limited to notes, which could help those who are struggling financially.
During the survey in November, just one in six (16 per cent) were aware of the scheme, four months after its launch. Three in 10 (31 per cent) of those who said they were aware of it have used the scheme – equating to just five per cent of the UK population.
Almost half of the people interviewed (46 per cent) said they were unlikely to use this service. A quarter (25 percent) of these people said it would not be a convenient way to access cash, 17 per cent had concerns over privacy and 16 per cent were worried about security issues. A quarter of people (25 per cent) who said they are unlikely to use the service, said it would feel “unfair” to the shop or business to handle the cashback service.
In December a raft of measures were announced by the Cash Action Group (CAG) following the latest analysis from Which? on bank branch closures. Closures surged last year with 736 shutting their doors – and a further 221 are already earmarked for closure this year. Major banks agreed to share some services and LINK was put in charge of reviewing the impact of branch closures.