Cash withdrawals at retailers in Cyprus
Following an{international trend, consumers in Cyprus will now be able to withdraw cash without a fee at supermarkets, bakeries, butchers and gas stations that opt to provide the service. The maximum withdrawal limit has been set at 100 euros.
The service has been in place for many years in the US and allows consumers to save time by not having to make a trip to an ATM. The system enables debit card holders to request cash back when paying for their goods via Mastercard or Visa via a POS terminal. Once the prices of the goods are punched into the terminal, the system will ask the customer if they would like to withdraw up to 100 euros in cash. The customer can approve or decline the additional transaction.
Traders will have to contact their service provider to request this additional service.
The idea behind the new service is to help consumers save time by cutting out an additional item in their to-do list: dashing to the bank to withdraw money, which is sometimes inconvenient and time-wasting.
Traders benefit from this service as well, contributing to an increase in sales and improving the customer’s shopping experience.
No additional fees will be charged for this service as the entire amount will be considered a cash purchase.
Consumers will soon be able to get their hands on digital euros as well, which – unlike cryptocurrencies – will be formally issued and operate alongside physical money.
In a recent interview with the Cyprus News Agency, Christos Phanopoulos, senior director of the Banking Operations Division at the Central Bank of Cyprus, commented on the intention of the European Central Bank to issue a digital euro, saying that this would increase public confidence in digital payments, clarifying that the digital euro will not replace cash in euros, but will work in addition to them.
The decision to create the digital euro will be taken after the conclusion of the investigative phase at the end of 2023, he clarified. He stressed that the digital euro will not be equivalent to a cryptocurrency.
Unlike the use of cryptocurrencies, those who eventually choose the digital euro will be able to trust it as much as cash in euros, as both of these forms will be of equal value and will be supported by the Eurosystem, Phanopoulos explained.
