The European Payments Council recognizes the importance of ensuring access to Money in physical form such as banknotes and coins. which is essential to A process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is r... More, as expressed in the Payments Service Directive which promotes access of all to a A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. account and a minimum set of payment instruments including a cash withdrawal card. In order to ensure access to cash in a convenient and affordable way, participants in the cash value chain pursue two main complementary strategies:
The right to recirculate banknotes that have been checked for authenticity and sorted for fitness by banks and cash-in-transit companies. The right is normally based on rigorous rules established by t... More can be defined as the process to put again in circulation banknotes received from the public (consumers, retailers, or others) without handing over these banknotes to a national central bank.
A number of contextual factors also support the development of recirculation:
A A service whereby the customer pays electronically a higher amount to a retailer than the value of the purchase for goods and/or services and receives the difference in cash. It is also a reward syste... More facility is a service whereby the customer pays electronically a higher amount to the retailer then the value of the purchase for goods and/or services and receives the difference back in cash.
Recirculation can take place at several locations:
In 2016, In general, the expression refers to the central banks of different countries. within the The name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. area checked for fitness and The condition that a security element of a banknote or security document is genuine. 32.3 billion notes whereas credit institutions and Companies specialized in the logistical handling of cash including several of the following operations: transportation, storage, counting and processing, packaging, replenishment and servicing of ATMs... More checked 33 billion notes. For the first time, recirculation has overtaken central bank processing.
Cash-in-shop, also referred to as a “virtual ATM” is an example of a new The right to recirculate banknotes that have been checked for authenticity and sorted for fitness by banks and cash-in-transit companies. The right is normally based on rigorous rules established by t... More method allowing a customer to withdraw cash from their payment account using a mobile application at a participating shop.
The report highlights that there are significant national differences in the organisation of the cash cycle and that there is no “one-size-fits-all” solution. Nonetheless, in spite of a European regulatory framework for recirculation there are still a number of distinct national dispositions that hinder recirculation and the EPC calls for more convergence of national cash cycles, in particular to reduce differences of treatment within the Single Market. Several examples illustrate how recirculation could be further developed; they include: