Serbia implements cash back service – Cash refunds after making payment card purchases enabled
From the aspect of competence of the NBS and the Ministry of Finance, there are no hindrances to this service, though the decision on enabling consumers and retailers to use this option lies with card systems, issuers and acceptors. All merchant facilities with PoS terminals – shops, kiosks, supermarkets, megamarkets, etc. are eligible to provide the service. Cash refund must be linked to the goods and services payment transaction.
– For instance, a consumer may withdraw cash (e.g. RSD 1,000) in a supermarket when making a card purchase worth RSD 2,000, i.e. both transactions can be effected at the same time at PoS terminals (in this concrete example in the amount of RSD 3,000). The maximum withdrawal amount is regulated by the operating rules of card systems. A retailer may also stipulate a lower amount, of which he must inform the consumer. Card system operating rules usually do not prescribe the minimum value of goods purchased as a condition for a cash refund – it was explained in a press release by the NBS.
From the retailer’s point of view, this option implies that cash from the cash register paid out to the consumer is turned into deposit money in the retailer’s account (transferred from the consumer’s to the retailer’s account), whereby the retailer meets a part of the obligation to pay takings into its current account, as stipulated by the Law on Payment Transactions by Legal Entities, Entrepreneurs and Natural Persons Not Engaged in Business Activity. This reduces the number of retailer’s trips to the bank for the purpose of paying takings and in turn diminishes the associated security risk, as well as reduces retailers’ costs on account of bank charges, it is added.
The cash back service does not require the issuance of any specific approvals to retailers (as it is not a payment service subject to the Law on Payment Services). As for the retailer, only the form of the received money is changed – daily takings are turned into deposit money equaling the amount of cash paid out to the consumer.
This service is in fact another manner for drawing cash which is particularly important for the population in areas with an insufficiently developed ATM network. Consumers can also save time as they do not need to go to another location to draw cash from their account, the NBS clarifies.
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