While the number of people paying with cash is rapidly decreasing and a growing number of businesses are putting up "no cash" signs, shops in Belgium are not allowed to refuse bank notes or coins, stressed the Federal Public Service (FPS) for Economy on Friday.
Digital payments are going up in Belgium, as 48% of purchases in the country are already made by card or app – placing Belgium fourth among countries in terms of online payments, according to figures from the European Central Bank.
"There are shops, restaurants and cafes where cash is no longer even accepted, but there is a European regulation that says it is legal tender and merchants cannot refuse it," Lien Meurisse of the Federal Public Economy Service explained on Flemish radio.
Despite ranking in the top five of most digital payments, 45% of purchases in Belgium are still made with cash. "Only in certain exceptional and temporary cases can cash can be refused," she said.
Related News
- Record of two billion cashless payments made this year in Belgium
- Electronic payments not available everywhere despite legal obligation
- Companies still refuse electronic payment despite new law
There are only four cases in which it is okay to refuse cash, as stated by the EU regulation:
- When the customer wants to pay with more than 50 coins for one payment, or when the amount to be paid exceeds €3,000.
- When the merchant does not have enough change or because the value of the banknote offered is disproportionate to the amount of the purchase. (For example, when paying with a €200 or €500 note, 'disproportionality' can be talked about when the amount to be paid is less than 50% of the banknote offered.)
- When the trader can justify that there is an "exceptional and temporary security need" in a specific neighbourhood. For example, in an area where several robberies have recently taken place. This can only be done if there is a temporary and imminent danger of local burglaries.
- Lastly, a trader can also refuse banknotes if there are serious reasons to believe that the notes are counterfeit.
If one of the above exceptions applies, stores can put up a sign saying that they will not take cash stating the specific reason visible to the customer. For example, a shop can make it clear that it does not accept cash payments of €3,000 or more.
But putting up a poster stating that no cash is accepted – without falling into the exceptional cases – for no reason is not allowed, stressed Meurisse. "Additionally, every merchant is also obliged to offer at least one digital means of payment."
