Cash Payment Limit Across Europe
Misha - Miodrag Miladinov
Senior Business Developer | Assisting ?? POS Software Providers, ?? Retailers, and ?? Hospitality Companies with Regulatory Compliance | Fiscalization Made Simple
European Union member countries have many of the same laws and rules that they follow, however, each country separately also has its regulations differentiating it from others.
One of the laws currently being consolidated is the limit of cash payments, as each member country has its own, but the idea is to have a unified maximum cash limit across countries.
The cash limit, in general, is put in place to combat terrorist financing, money laundering, and tax evasion.
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How does the cash payment limit work?
The most optimal solution and control of financial activity can be:
The purpose of this restriction can be achieved in two ways. In the first option, it's not possible to pay with cash exceeding the limit, however, other methods like card payment are possible, and in the second option, the company must inform the state authorities about the more significant transaction amount.
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The European Commission believes that for the best efficiency, this limit should be uniform in all member countries.
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Let’s see how it currently looks like
The lowest allowed cash limit of 500 euros is in Greece, and the highest in Croatia and Poland, reaching 15,000 euros. Following them is the Czech Republic, with the upper limit for cash payments of 270000 crowns, around 11500 euros.
In Italy, Belgium, and Portugal, the limit for cash payments is 3000 euros.
France has one of the lowest cash payment limits, with only 1000 euros.
There are also countries in the EU where there is no limit at all. These countries are Estonia, Finland, Ireland, Cyprus, Luxembourg, Malta, Germany, Austria and Sweden.
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Failure to comply with the law on cash payment limits in each country can lead to severe fines, directly affecting retailers and their POS. Programming the cash register to reject payments above the allowed amount is always the best solution, rather than leaving it to the employees, which can lead to human error.
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Bearing that in mind, as well as the fact that card payments are becoming more common and the future, do you think that the cash limit should be uniform in EU member states?
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I came across the article by accident. The limit in Poland is not 15,000 euros, but rather in PLN, and it is not the highest in the EU.
Senior Financial Crime Compliance Specialist
1 年Bear in mind that in some countries this is not really an absolute ban. E.g. in Poland companies can still accept cash payments over 15k but then they will just have some limitations when it comes to tax deductions etc for such operation.
Software Engineer
1 年This is the beginning of the end... This is so unbelievably bad. Money Laundering my ass – this excuse has been used for way too long in order to restrict human rights and freedoms... Central banks are the culprits of all this evil and will continue to make the lives of the most vulnerable around the world miserable –?great job... And politics always has and always will serve the central bankers, not you. If you think cashless is good, you clearly don't see the signs and where we're headed with this. CBDCs are next. We need to fight against this. This is unaceptable. Freedom is not just a word. Europe is dead. Bitcoin can fix this. Bitcoin is the future. https://www.hope.com/
Protective Security Specialist - Paramedic
1 年If I'm good as saving money and want to use 5.000 euro of cash to buy tile and materials to renovate my home, it's nobody's business.?
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1 年Wow! This is a great topic, valuable info, and a comprehensive description! Though, I was missing Hungary from the list. ??