A shop in Blackbird Leys, Oxford, is urging customers to use its cash back service to avoid being stung by cash machine fees.

Deltey's Supermarket in Blackbird Leys Road is the only hole-in-the-wall cash machine available for more than 12,000 residents in Blackbird Leys and Greater Leys, charging £1.75 per transaction.

East Oxford MP Andrew Smith is meeting with the Royal Bank of Scotland after it decided not to keep the machine free, despite installing 300 new cashpoints in deprived areas across the country.

It was a free cash point for four years, until the Royal Bank of Scotland sold the machine to Card Plus, who brought in charges in November 2004.

And, according to Deltey's Supermarket director Paul Whitman, the change marked a significant change in use.

He said the machine saw around 12,000 transactions per month when it was free, but three months ago attracted only 4,500 customers willing to pay the fee during a four-week period.

Now Mr Whitman is urging customers to avoid the cash machine if they oppose the charge and get cash back from his store when they buy goods.

He said: "All the students from the college come here and people shopping buy their things and get cash back because there is no charge. We seem to be dragged into this because the cash point has a bad name and we are charging people, but we are doing everything possible to give people their money free of charge.

"I agree that people should not have to pay to get to their money but like anything in life you pay for the convenience and that is just what it is - a convenience."

Bills can be paid on card at the shop counter. Cash can also be taken out of accounts at the Post Office counter inside Martin's Newsagent in Blackbird Leys Road.

There are charging cash machines at five other places on the estate: The Blackbird and Bullnose Morris pubs, Oxford Stadium, Sandy Lane, The Bowlplex and Gala Bingo at Kassam Stadium and Spar in Dunnock Way, Greater Leys.

Last week the Royal Bank of Scotland announced it would not be fitting a free cash point in Blackbird Leys because the estate did not fall within the guidelines set by the Government.

The boundaries of the estate fall within one kilometre of free Royal Bank of Scotland cash points at Tesco in Cowley and Boots at Temple Cowley Shopping Centre.