POS Limit Means

If you don’t want to visit the ATM for cash withdrawal, the nearest designated merchant with a POS terminal could come to your rescue. Read this POS to know how.

From NetBanking and Mobile Banking to UPI, online payments in India are now easier than ever. And just like digital banking, the physical banking infrastructure has also advanced by leaps and bounds. For instance, do you know you can use Debit Cards for cash withdrawals at a POS terminal?

The facility reduces our reliance on ATMs and makes cash withdrawals super convenient. Continue reading to learn more about this withdrawal facility and POS limit on Debit Cards.

Ever seen offline merchants using a small device to Insert / Tap your Debit Card for payments? These devices are known as POS (Point-of-Sale) terminals. It is a hardware system used to process card payments at physical locations.

The device is equipped with a card reader and software allowing it to scan your card's chip. Once the card is inserted, the device then asks you to enter your PIN and confirms whether you have adequate funds in the linked bank account. On confirmation, the bill amount will be debited from the cardholder's account and transferred to the retailer's bank account.

Apart from offline payments and withdrawing cash from bank and non-bank ATMs, a Debit Card can also be used to withdraw funds at select POS terminals. Leading banks have designated merchant establishments where they offer this POS transaction facility. All you have to do is go to the POS terminal enlisted by your bank and make the withdrawal with the help of the teller managing the POS terminal.

You can use your Debit Card to withdraw funds at a POS terminal. Some banks also offer Prepaid Cards with a cash withdrawal facility, which can be used for POS withdrawals.

However, as per the RBI directive, Credit Cards cannot be used to make cash withdrawals at POS.

Besides cards, the POS cash withdrawal option is also available through UPI. Also, customers don't have to purchase anything from the seller to withdraw cash through their POS. You can visit a designated establishment (declared by your bank) to withdraw cash.

Using your Debit Card to withdraw cash at a POS terminal is similar to making card payments. Follow these steps-

• Inform the amount you'd like to withdraw from your bank account to the employee managing the POS terminal.

• The employee will insert your Debit Card in the POS terminal and enters the amount you'd like to withdraw.

• You'll be asked to enter your Debit Card PIN.

• If the PIN is correct and there is sufficient balance available in the bank account, your transaction will be processed.

• The employee will then hand over the cash and withdrawal receipt to you

According to the guidelines by the RBI, the daily POS transaction limit for withdrawal is INR 2,000 per transaction. Moreover, the monthly withdrawal limit per card is INR 10,000. 

Note that some merchant establishments also charge a fee for offering this POS withdrawal facility. The fee for the same cannot be higher than 1% of the withdrawn amount. 

• The POS cash withdrawal facility is not available for Credit Cards

• Not all the POS terminals offer this withdrawal facility

• If you have purchased something from the merchant and also withdrawn cash from their POS terminal, the payment receipt should mention the bill amount and cash withdrawn separately

• If the transaction fails or if there is any complaint, you can contact the support team of the card provider

Debit Cards add a lot of convenience to our lives. From online and offline payments to cash withdrawals, they facilitate everyday finance and make it secure and hassle-free.

AU Small Finance Bank offers an extensive range of high-interest Savings Accounts with feature-packed Debit Cards. Browse through the wide range of Debit Cards offered by the bank and apply online to experience a new world of everyday banking.