Small village shops could be obliged to allow customers to withdraw cash within the limit of 750 lei, according to a recent European decision. Basically, the measure aims to facilitate citizens' access to funds in areas where there are no ATMs.
Small village shops could be forced to allow customers to withdraw cash
The Council of Europe and the European Parliament decided last week, regarding a regulation on cash payments, that small shops in rural areas would allow customers to withdraw a maximum amount equivalent to 150 euros (about 750 lei).
“Access to cash will be improved especially for people in rural areas who may have difficulty accessing an ATM. Under the new framework, retailers will be able to offer cash withdrawals without the need to make a purchase. To prevent abuse, such withdrawals will require chip and PIN technology and will be subject to a maximum withdrawal limit of €150 or the equivalent in the national currency”the document states.
Improving access to cash
The new rules introduce more transparency for ATM transactions. Providers will be required by law to show the user all fees due and exchange rates applied before a transaction is made.
Similarly, companies that offer card payment facilities to merchants will need to make clear the fees they charge for their services. Overall, EU consumers and businesses will have a much better overview of applicable fees and be able to make more informed choices.
Finally, merchants must ensure that their regular business name matches the name that appears on customer statements . This will help consumers easily recognize spending on their accounts and reduce confusion.
The new framework will also help adapt the EU payment services landscape to new and innovative ways of making payments. Innovative service and information providers will be able to offer customers more useful and modern payment services through improved access to bank account information.
“The Council and the European Parliament will continue to work on the technical elements of the package before the final adoption by the co-legislators”it is specified in the document agreed by the two European institutions.
The agreed text will now go through the regular EU legislative process before its formal adoption, including revision and legal-linguistic translation. At the end of this process, probably at the end of the first quarter or the beginning of the second quarter of 2026, the text will enter into force and begin to apply after a transition period expected to be 21 months.
Romania has had such a law since 2016, but for the withdrawal of a maximum of 200 lei
In Romania, the law entered into force in May 2016, initially only for stores that already allowed payment by bank card. However, the implementing rules were issued with a delay of more than a year, so it was only in 2018 that a new law was issued obliging all merchants with a turnover of over 10,000 euros per year to install devices for card payment, concluding an agreement with their bank to apply the “cash back” system.
That is, a customer who buys a product no matter how little expensive, even a chewing gum, will be able to ask the seller to give him an amount of “ice money” of up to 200 lei from his account.
On June 16, 2024, another law entered into force – 406/2023 – which regulates bank cards and card payments at merchants, containing provisions for cash advances from stores.
According to her, since the summer of last year, up to 500 lei in cash can be withdrawn from stores.
In addition, merchants can offer the cash advance service at payment terminals based on the contracts concluded with the accepting institutions and can grant cash advances. Traders must display in a visible place the sign regarding the provision of this service, as well as information on the costs of the service.
The advance mentioned above is clearly marked on the tax receipt and cannot exceed the amount of 500 lei.
Transactions regarding the cash advance are assimilated to cash withdrawals from ATMs, and the commissions related to the transactions are established according to the contracts in force between the parties.
Merchants can charge, from the card holder, a commission that cannot exceed 1% of the value of the advance granted.
What traders say
The small rural traders contacted by “Adevărul” were not at all pleased with the actions of the European officials, most of them citing the low receipts.
“I can't even afford to sign up with the bank for POS because of the fees they charge. I tried once last year and gave up”a small merchant from a village about 30 km from Bucharest told “Adevărul”.
“I have known about these regulations for a long time, that they are also with us in Romania. But I have very small receipts, most of the time in the notebook. People are serious, they give me the money on my salary. Where can I get 750 lei in cash?! And I don't even have POS”another stated.
On the other hand, the big retailers are of a different opinion, arguing that in localities where ATMs have disappeared, this service could become essential.
“ATMs in the villages were abolished because they were no longer efficient. People have to travel 15-20-30 kilometers to the city to get some money“, recently declared Feliciu Paraschiv, vice-president of ANCMMR, stating that the most advantaged would be pensioners who receive the money on the card, but do not have access to ATMs or bank branches.
