Why don't cash machines dispence 50 pound notes?

Answer 1

£50 notes aren't all that widely accepted in the UK. A lot of shops will refuse them, and those that do (generally large retailers and chains) often have policies in place to have the note checked and double checked by managers. This is all because of a fear of forgeries; it's slightly irrational considering £20 notes are far more likely to be forged, but understandably businesses don't want to lose £50 in one go to a forged banknote

And bear in mind that the current (Series E) Bank of England £50 note was designed in 1994 and lacks security features such as holograms and UV ink that make counterfeit £20 notes fairly easy to identify. (That said, Scottish £50 notes are far more advanced, and it's easy to see a fake note when you know what to look for).

For that reason, the demand is fairly low. Consumers don't want the hassle of being unable to spend the note, and don't like being "treated like a criminal" whenever they are able to spend it. So there is little demand from these notes from the small (normally <£300) transactions carried out at ATMs.

Another reason is the declining use of cash. Many people now use their card for medium-large sized transactions, even when they have cash on them. Whilst people still may have quite a bit of cash with them, they would want smaller notes that they can spend on smaller things (like cups of coffee, newspapers, train tickets...) rather then large notes which are harder to use for small transactions.

The declining use of cash will now probably mean that even the redesigned £50 note (launching in December 2010) will not be popular, as people are now set in their ways with cash and cards. But the redesigned note, with new security features to help combat counterfeiting, may prove more popular and mean that more places will accept the notes. And, consequently, the larger demand could see them placed in ATMs.