EU turns every store into a cash machine

The European Union wants consumers to be able to withdraw cash from retailers, even if they are not buying anything. According to a new agreement on safer and more transparent payment transactions, retailers will have to allow cash withdrawals of up to 150 euros.

Cash without purchase

On Thursday, the Council and the European Parliament reached a provisional political agreement on a thorough revision of payment legislation. The deal includes stricter measures against fraud, greater transparency on costs, and better access to cash. The agreement still needs to be formally approved.

Among other things, the new rules introduce a mandatory display of costs before a transaction takes place. Merchants must also ensure that their trade name matches the name that appears on the account statement. This should reduce confusion and reports of fraud.

Particularly striking is the way in which Europe wants to improve access to cash. The Council argues that the number of ATMs is rapidly disappearing, especially in rural areas. For this reason, retailers will soon have to allow cash withdrawals of up to 150 euros without requiring a purchase. To prevent abuse, the EU requires that these transactions be made using a chip and PIN code, not contactless.