16:23, 16 November 2020 668 views
Regulator recommends banks limit cash-outs at stores
The Bank of Russia has published an explanatory letter to clarify the procedure for cash-outs provided to the cardholders making purchases at merchant locations.
The letter states that in order to minimize the risks of involving merchants providing cash-out services in illegal activities, the Bank of Russia recommends that credit institutions issuing payment cards be guided by the following:
• the daily limit for cash-out operations (in total for all cards issued by a credit institution to the individual) must not exceed 5,000 rubles (c.$65)
• the monthly limit for cash-out operations (in total for all cards issued by a credit institution to the individual) must not exceed 30,000 rubles ($387)
• cash-out services are not provided unless the cardholder makes a purchase of goods/services at the merchant outlet.
The cash-out service is available to individual cardholders, but it is not provided to the holders of corporate cards of legal entities and individual entrepreneurs.
Credit institutions that provide acquiring services are advised to set similar per card limits for each merchant.
The Bank of Russia also recommends the cash-out services to be only provided if the cardholder is buying a product or service in a store. “The cash-out service is not provided on corporate payment cards of legal entities and individual entrepreneurs,” the Central Bank emphasized. Stores must give the customer a receipt with respective cash-out details. Meanwhile, no ID documents are required to receive this service, the regulator notes.
To receive the service, no additional documents or data of individual cardholders are required either.
To mitigate the risk of invalid and counterfeit banknotes and coins of the Bank of Russia entering cash circulation, the staff of merchants involved in the cash-out services should be remotely trained and tested under the Professional Development Programme. The Programme intended for retailers’ checkout personnel and focused on teaching them how to check the authenticity and validity of banknotes of the Bank of Russia, is published on the website of the University of the Bank of Russia.