Withdraw cash on hand – now it’s easy
Withdraw cash on hand – now it’s easy05.06.2018
Mastercard launches a project that has no analogues in Russia for now: the owners of bank cards will have the possibility to withdraw cash at the stores of some major retailers. Proceedings of the St. Petersburg International Economic Forum informed about this.
The corresponding memorandum will be signed on June 7, 2018.
Similar projects are already functioning in the US and Europe. The service is entitled “Purchase with Cash Back”, that is, literally “buying with cash withdrawal”. It works in the following way. The customer purchases goods at the store of the trading network participating in the project. While making payment with a card, the customer informs the cashier of the required amount for withdrawal. The amount of money does not matter (for example, if the price of a commodity is 1000 rubles, the cash may be 5000 rubles). After the transaction is approved by the issuing bank, the bank itself withdraws the total amount from the client’s account (in our example – 6000 rubles). So, in order to use the service, you will need to make a purchase.
When making an operation, the shop charges a commission. Exact rate is not yet known, but in the US it ranges from $ 1 to $ 3.
The benefits of innovations for retailers are obvious. Apart from additional profits at the expense of commissions, this makes savings on collection: when the cashier receives less cash, costs will be reduced. With banks everything is not so clear. Representatives of some financial organizations believe that cash settlements are becoming less relevant, and if withdrawal of funds is required, customers are accustomed to using an ATM. In addition, with the introduction of the project, the bank will lose one of the channels of promotion (still considering the same ATMs, which help to offer some products).
So far, the project has been supported by the Russian Standard Bank and Metro Cash & Carry: cash withdrawals will be available at the retailers’ franchise chain “Beans”. It is currently represented by 340 stores in 20 cities. There is no information on other trading networks (“Magnet”, “Tape”, “Dixy”). It is known only that “Auchan” refused to participate in the project. The Euroset management is also considering the provision of “Purchase with cash back” services to the clients. V. Lukanin, Vice President of the company, is confident that the service will be in demand.
Visa is also considering the similar project. A company representative shared information that a similar service is planned to be offered to banks.
Legal aspects of innovation are regulated. The Federal Antimonopoly Service, having received the Mastercard company application, believes that the implementation of the project does not violate the requirements of the legislation.