UK not the only country in Europe that allows shops to refuse cash

A post on Facebook with almost 500 comments asks: “So why are we the only European country where businesses won’t accept cash?”

While it’s true that in the UK it’s lawful for shops and businesses not to accept cash, it’s not the only country in Europe where this is the case.

Full Fact has found at least three other countries—Sweden, the Netherlands and Finland—that also have rules in place meaning shops can lawfully choose to not accept cash.

Full Fact was not able to verify whether shops have to accept cash in every European country. Although the European Commission recommends that cash is accepted, this is not binding.

Swedish shops can refuse cash

According to Sweden’s central bank, “Under the Sveriges Riksbank Act, cash is legal tender in Sweden, which means that it is to be accepted as payment everywhere.”

However, this rule “can be waived by agreement by shops, restaurants, etc., via what is known as freedom of contract”.

The bank goes on to say: “In other words, a shop can basically refuse to accept any cash at all, refuse to accept coins or certain denominations (for example 1000-krona banknotes). From a consumer perspective, it is helpful to obtain this information in advance (for example in the form of a sign on the shop door) so that they can choose if they wish to shop there or go somewhere else.”

There is an exception in the case of hospitals in Sweden, which, following a 2015 court case, cannot refuse cash.

Shops in Finland don’t have to accept cash

According to Finland’s competition authority, there is no provision in legislation that forces retailers to accept payment in cash.

The country’s central bank says: “Under the principle of freedom of contract that prevails in Finland, shops are free to choose the forms of payment they wish to accept, provided they communicate the position clearly to customers before the latter decide to make a purchase.” 

But the country has similar exceptions to this as Sweden.

The bank goes on to say that it “takes the view that it is important that cash be accepted as a form of payment in relation to services of importance to the general public”.

In the Netherlands, shops must signpost which forms of payment they accept

Dutch businesses can refuse cash but need to display a sign saying so.

The Dutch government says: “The law does not require anyone to accept legal tender. Shopkeepers may refuse cash (notes and coins) or payment by debit or credit card. However, retailers must clearly state which payment methods they do not accept. For example, via window stickers or cash register stickers.”

Cash elsewhere

We’ve written previously about how, in general, French retailers can’t refuse cash, except in limited circumstances, including if the notes are in poor condition or counterfeit, made up of more than 50 coins, and for safety reasons, for example shopkeepers on night shifts.

Several countries in Europe (like France, Greece and Spain, amongst others) have laws preventing cash payments over certain amounts, usually in the thousands. In Germany, for cash payments over €10,000, customers must show ID and have their details taken by the trader.

The EU issued a recommendation that retailers “cannot refuse cash payments unless both parties have agreed to use a different means of payment” and that displaying a label or poster warning about this is “not enough” and should provide a “legitimate excuse”.

However, this is advisory, as Finland, which is an EU member, doesn’t need traders to provide a reason, and when the UK was an EU member, shops could still refuse cash.

In the UK it’s lawful for shops and businesses to refuse cash. Shop owners can choose what methods of payment to accept and can also refuse card payments.

Image courtesy of Calvin Hanson