The National Bank of Serbia and Serbian Ministry of Finance announced that a new service, known universally as cash back will be introduced in the upcoming period.
Consumers will now be able to receive a cash refund at the PoS terminal after making purchases of goods and services with payment cards. As explained by the National Bank of Serbia, this service is a new way of cash withdrawal, which is very important for the population in areas with insufficiently developed ATM network.
Cash back services can be enabled at all merchant facilities which have PoS terminals – in shops, kiosks, supermarkets or megamarkets etc. The condition for providing a cash back service is that the payment of cash is linked to a transaction in which goods and services are paid for. The maximum amount which can be withdrawn is regulated by the operating rules of card systems. Retailers are also entitled to stipulate a lower amount of which they must inform the consumers.
From the aspect of the retailers, this service implies that cash from the cash register paid out to the consumer is turned into deposit money in the retailer’s account. 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 Serbian Law on Payment Services). As for retailers, only the form of the received money is changed – daily takings are turned into deposit money equalling the amount of cash paid out to the consumer.