Free cash withdrawals in stores: why don’t we use them?

By: Trademagazin Date: 2025. 01. 28. 12:30

More than a year and a half ago, a regulation came into force in Hungary that allows customers to withdraw up to 40,000 forints in cash per month at store checkouts while shopping. Although this option offers an attractive alternative to ATMs on paper, most customers do not use it. A survey by Pénzcentrum shows that store chains are in no hurry to introduce the service either, many are shying away from the idea or are only investigating its possibility.

The regulation came into force in the summer of 2023, but this method of cash withdrawal has not been widely spread since then. The only major department store chain where the cash-back system operates is PENNY. The company introduced this option in 2017, but according to its own data, customers hardly use it. Cash withdrawals are used in less than 0.1% of transactions, and even then they are mostly limited to small amounts.

PENNY will nevertheless retain the service, although the demand for it is minimal at the national level. In some regions, this option is practically not used.

Lidl and Spar have firmly stated that they do not plan to introduce a cash-back system. Lidl Hungary has made it clear that they have neither conducted any preliminary surveys nor are they planning this convenience service. Spar shares a similar view and sees no need to introduce the system.

Auchan and Tesco have shown a more open attitude, but neither chain has yet decided to introduce the service. According to Auchan, they would examine the possibility if there were serious demand from customers. Tesco also said that they are in talks about a service provider and that they plan to introduce the system primarily in convenience stores if it does happen.

One of the main reasons for the resistance to the cash-back system may be the growing popularity of digital payment solutions. Most people prefer ATMs when they need cash. For stores, managing the increased cash stock means additional costs and risks. Although the introduction of the service is not mandatory, the low interest of customers does not encourage store chains.