Since July 1, 2022, every business in Belgium must offer an electronic payment method. What does this mean for cash payments? Can you refuse cash payments?
The euro: the legal tender
The euro has been the only legal tender in Belgium since 2002. Without specific agreements, you must accept payments in euro, both cash and electronic. So refusing cash payments is not allowed for merchants.
Obligation to accept cash
Since March 31, 2024, a legislative change has been made to the Belgian Economic Code, following complaints about places where cash was not accepted. This change emphasizes that merchants are obliged to accept cash payments.
This change does not affect the existing obligation for merchants to offer at least one electronic payment method. Both obligations remain in effect.
The known rounding rules also remain the same: amounts are rounded to 5 cents, but coins of 1 and 2 cents are still legal tender and may not be refused.
Finally, additional charges for the use of a particular means of payment are also not allowed.
When does the obligation apply?
- Cash payments in euro must be accepted when the consumer and the company are physically present. Think of physical presence e.g. a supermarket or hair salon where both the business and consumer are present at the same location.
- The obligation applies not For distance sales, such as e-commerce or vending machine sales.
Exceptions to the rule
There are some situations where cash payments are refused may Becoming:
- Temporary refusal for security reasons (if clearly indicated in the sales area and at the cash register);
- When the bill offered is disproportionate to the amount owed (e.g. a EUR 100 bill for a loaf of bread);
- Payments with more than 50 coins;
- In case of serious suspicion of counterfeit or damaged bills.
There are also certain circumstances or industries where a cash payment is must be refused and thus always prohibited:
- Payments above EUR 3,000: to prevent money laundering and terrorist financing;
- Sector of trading in old metals, precious metals and copper cables;
- As of March 31, 2024, these businesses may only pay electronically. Consider jewelry stores that buy up precious metals.
- The individual himself can pay up to EUR 3,000 in cash as usual.
- Immobility sector;
- Since Jan. 1, 2014, there has been a total ban on cash payments when buying or selling real estate.
- Only wire transfer or check is allowed.
Sanctions
Violations of these rules can be criminally punished. The change in the law makes it easier to impose penalties for repeated violations. For example, in the case of a second finding of infringement, when no appropriate action has been taken after the first finding of infringement.
Conclusion
As an entrepreneur in Belgium, you must not only offer an electronic payment method, but also accept cash payments in euros, unless you fall under the exceptions listed. This provides clarity and certainty for both merchants and consumers.
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