Cash machine shortage puts pressure on retailers

Betri Banki recently increased service charges on its cash machines from DKK 5 to DKK 8 per transaction.

According to the bank, this is due to the relatively high costs of running the cash machines.

The bank has now also announced further cost-cutting measures involving the removal of half of its 16 cash machines across the country.

The remaining machines are the ones in Vestmanna, Miðvágur, Saltangará, Norðskála, Tórshavn, Klaksvík, Sandur and Tvøroyri.

Pressure on retailers

Eyðvør Berg, chairwoman of the Retailers’ Association, fears that the reduced options for cash withdrawal will put pressure on retail stores as customers will increasingly be requesting cashback services, i.e. withdrawing cash on top of their credit card purchases.

“Not only would this result in an added work burden for store workers; it would also be costly for the stores, as they need to pay a certain percentage of the withdrawal amount to the credit or debit card issuer.”

According to the latest figures, about 90 percent of all payments in retail stores are made with credit or debit cards and only 10 percent with cash.

Translated by prosa.fo