What payment can a professional refuse (cash, check, credit card)?

Verified 04 August 2023 - Directorate for Legal and Administrative Information (Prime Minister)

A trader has the right to refuse payment by check or by credit card provided you indicate this by a display. On the other hand, he must accept payment in cash, except under certain conditions. The professional affiliated to an approved management center or association (AGA/CGA) benefits from a special scheme.

General case

A professional has the right to refuse means of payment (check, credit card, cash), subject to certain conditions.

Check

A professional may refuse payment by check or require a minimum or maximum amount provided you have some clearly informed its customers.

That information is being provided per display channel (e.g. at the checkout counter) and in its general terms and conditions of sale (GTC) with an indication of the type:

  • Checks are not accepted
  • Checks are accepted from...
  • Checks are accepted until...

Please note

A trader may require the submission of a identity document to accept a check (national identity card, driving license or passport).

Credit card

The professional may refuse payment by credit card or require a minimum amount provided you have some clearly informed its customers.

That information is being provided per display channel (e.g. at the checkout counter) and in its general terms and conditions of sale (GTC) with an indication of the type:

  • Credit cards are not accepted
  • Credit cards are accepted from...

In case of payment by credit card greater than €1,500, the receipt signature (e.g. receipt) is required.

Please note

The taxi driver or the VTC has the obligation to accept cash and credit card payments.

Cash

In principle, the trader hasobligation to accept cash payments.

However, it may refuse them in the following cases:

  • Foreign currencies : the trader may refuse a currency other than the euro.
  • Damaged species : torn or illegible banknotes are liable to be rejected by the bank upon deposit.
  • Number of parts too high : the trader can refuse any payment made with more than 50 pieces.
  • Counterfeit currency : if the authenticity of a ticket is in doubt, the professional can identify the customer and refuse payment.
  • Addition : a payment may be refused if the customer is unable to pay the exact amount and the trader does not have enough money.

Warning  

Outside these exceptions, a trader who refuses a cash payment shall be liable to a fine of €150.

In addition, a cash payment may not exceed €1,000, unless it is the customer's only means of payment (no bank account). This threshold shall be raised to €15,000 for tourists of foreign nationality who incur a personal expense (e.g. payment for a vehicle).

When a trader does not follow certain rules, he or she may subsequent penalties :

  • The professional who refuses a cash payment without justifying it (counterfeit currency, cash in poor condition, foreign currency, etc.) is liable to a fine of €150.
  • The trader who refuses a means of payment without to inform customers by means of a poster shall be liable to a fine of €3,000 is an individual entrepreneur (IS) and €15,000 if it is a business (SARL/EURL, SAS/SASU, SA...).
  • The professional who extra billing for customers depending on their means of payment is subject to a fine of €75,000 in the case of an individual contractor, and €375,000 if it's a business.
  • The professional who operates a discriminatory selection between its clients (in particular according to their place of residence or their age) to refuse them a means of payment incurred 3 years imprisonment and €45,000 of fine.
  • The bank must always pay checks up to and including €15even in the absence of a provision. Thus, the trader who splits the payment and receives several checks of an amount less than or equal to €15 for the payment of a debt in excess of this amount, a fine of €1,500 in the case of an individual contractor, and €7,500 if it's a business.

To protect yourself against NSF checks, the trader can ask for a identity document to its client and consult a file irregular checks. If the trader receives a NSF check despite everything, the trader can exercise a appeal against the check issuer.

Justification of identity in case of payment by check

In the case of payment by check, the trader may require presentation of one or more pieces of identificationin return for the check (e.g. national identity card, passport, driving license, etc.).

By not asking for this ID, he would be engaging his responsibility in respect of the account holder whose checkbook was stolen. In other words, the holder of the stolen check can turn against the professional if he proves that the latter has committed professional misconduct.

Consultation of the National Irregular Check Register (FNCI)

When handing over a check for payment of goods or services, the trader can check the regularity of the check issue by consulting the National Irregular Check File (FNCI).

This service helps ensure that the check issued was not reported as stolen or lost, drawn on a closed account, or issued by a person who has been banned from banking or legal action.

To consult the FNCI, subscribe to the FNCI-Verification service managed by the Banque de France.

Please note

The only information transmitted to the person who consults the file concerns whether the program is regular or not, without specifying the nature of any irregularity.

Facing a NSF Check

When the trader receives an NSF check, the bank sends him a certificate of rejection for lack of provision. He can then to appeal against the check issuer (the debtor).

The appeal shall take the form of a two-stage procedure:

  1. Mutual agreement procedure : the trader has 30 days to ask the debtor to regularize the situation within 30 days, by entering into his bank account or by paying by another means. We put a letter template at your disposal.
  2. Forced procedure : if the amicable procedure fails (no regularization), the trader can request a certificate of non-payment at his bank. We're putting on another letter template at your disposal. A commissioner of justice (formerly a bailiff and a judicial auctioneer) can thus serve the certificate on the debtor. The significance as a command to pay, the debtor is obliged to settle his debt in a 15-day period. If the payment is not regularized within this period, the Commissioner of Justice can then initiate any procedure to compel the debtor to pay (e.g.: wage attachment). The debtor shall bear the costs of the compulsory procedure.

CGA/AGM Affiliate

Every professional is free to join or not to an Authorized Management Center (AMC). Members are entitled to technical assistance in terms of managing and preventing economic and financial difficulties.

Please note

For the liberal professions, this role belongs to the approved management associations (AGAs).

Tax advantage for members

The members micro-entrepreneurs who have opted for the real tax system shall be provided with tax reduction for accounting costs and membership of the management body.

The reduction is equal to 2/3 of expenditure incurred. This reduction shall be limited to €915 and may never exceed the amount due from income tax (IR).

Find an Authorized Management Center or Association (AGA/CGA)

To find an authorized management organization in your department, go to the portal taxes.gouv.fr and follow the 4 steps following:

  1. Specify that you are a professional
  2. Indicate that your request relates to the search for specialist correspondents
  3. Opt, depending on your status, for a Authorized Management Center (AMC) or a approved management association (AGA)
  4. Select your department.

A professional has the right to refuse means of payment (check, credit card, cash), subject to certain conditions.

Check

The professional who is a member of an Authorized Management Center (AMC) must accept at least one of the 2 means of payment : either the check or the credit card.

Thus, he can refuse payment by check provided that he has opted for payment by credit card.

The professional must warn customers of the accepted means of payment with the words " Accepting payment of sums due by credit card in his capacity as a member of a management center approved by the tax authorities ”.

The information shall be communicated as follows:

  • By poster affixed in rooms intended to receive customers and in vehicles where sales or services are made. The placard must be readable without difficulty and must mention the name of the management center to which the professional belongs.
  • In correspondence and on business documents addressed to customers (letterhead, invoices, quotes, etc.).

Please note

In case of payment by credit card greater than €1,500, the receipt signature (e.g. receipt) is required.

In addition, the member professional can refuse payments by check (or by credit card) in the following 3 cases :

  • Small, cash-based sales (e.g. sale of a loaf of bread, groceries, hardware, etc.)
  • Professional regulation that imposes cash payments (e.g. sale of gambling in tobacco offices)
  • Very high collection costs compared to the amount of the transaction (e.g. small amount check from a foreign bank).

Please note

The trader may require presentation of an identity document to accept a check.

Credit card

The professional who is a member of an Authorized Management Center (AMC) must accept at least one of the 2 means of payment : either the check or the credit card.

Thus, he can refuse payment by credit card provided that he has opted for payment by check.

The professional must warn customers of the accepted means of payment with the words " Accepting payment of sums due by checks drawn up in his name in his capacity as a member of a management center approved by the tax authorities ”.

The information shall be communicated as follows:

  • By poster affixed in rooms intended to receive customers and in vehicles where sales or services are made. The placard must be readable without difficulty and must mention the name of the management center to which the professional belongs.
  • In correspondence and on business documents addressed to customers (letterhead, invoices, quotes, etc.).

In addition, the member professional can refuse payments by credit card (or check) in the following 3 cases :

  • Small sales that are usually settled in cash (e.g. sale of a loaf of bread)
  • Professional regulation that imposes cash payments (e.g. sale of gambling in tobacco offices)
  • Very high collection costs compared to the amount of the transaction (e.g. small amount check from a foreign bank).
Cash

In principle, the trader hasobligation to accept cash payments.

However, it may refuse them in the following cases:

  • Foreign currencies : the trader may refuse a currency other than the euro.
  • Damaged species : torn or illegible banknotes are liable to be rejected by the bank upon deposit.
  • Number of parts too high : the trader can refuse a payment made with more than 50 coins.
  • Counterfeit currency : if the authenticity of a ticket is in doubt, the professional can identify the customer and refuse payment.
  • Addition : a payment may be refused if the customer is unable to pay the exact amount and the trader does not have enough money.

Warning  

Outside these exceptions, a trader who refuses a cash payment shall be liable to a fine of €150.

In addition, a cash payment may not exceed €1,000, unless the customer has no other means of payment (no bank account). This threshold shall be raised to €15,000 for tourists of foreign nationality who incur a personal expense (e.g. payment for a vehicle).

When a trader does not follow certain rules, he or she may subsequent penalties :

  • The professional who refuses a cash payment without justifying it (counterfeit currency, cash in poor condition, foreign currency, etc.) is liable to a fine of €150.
  • The trader who refuses a means of payment without to inform customers by means of a poster shall be liable to a fine of €3,000 is an individual entrepreneur (IS) and €15,000 if it is a business (SARL/EURL, SAS/SASU, SA...). It also risks the exclusion of the Authorized Management Center (AMC) in the event of serious or repeated non-compliance.
  • The professional who extra billing for customers depending on their means of payment is subject to a fine of €75,000 in the case of an individual contractor, and €375,000 if it's a business.
  • The professional who operates a discriminatory selection between its clients (in particular according to their place of residence or their age) to refuse them a means of payment incurred 3 years imprisonment and €45,000 of fine.
  • The bank must always pay checks up to and including €15even in the absence of a provision. Thus, the trader who splits the payment and receives several checks of an amount less than or equal to €15 for the payment of a debt in excess of this amount, a fine of €1,500 in the case of an individual contractor, and €7,500 if it's a business.

To protect yourself against NSF checks, the trader can ask for a identity document to its client and consult a file irregular checks. If the trader receives a NSF check despite everything, the trader can exercise a appeal against the check issuer.

Justification of identity in case of payment by check

In the case of payment by check, the trader may require presentation of one or more pieces of identificationin return for the check (e.g. national identity card, passport, driving license, etc.).

By not asking for this ID, he would be engaging his responsibility in respect of the account holder whose checkbook was stolen.

Consultation of the National Irregular Check Register (FNCI)

When handing over a check for payment of goods or services, the trader can check the regularity of the check issue by consulting the National Irregular Check File (FNCI).

This service helps ensure that the check issued was not reported as stolen or lost, drawn on a closed account, or issued by a person who has been banned from banking or legal action.

To consult the FNCI, subscribe to the FNCI-Verification service managed by the Banque de France.

Please note

The only information transmitted to the person who consults the file concerns whether the program is regular or not, without specifying the nature of any irregularity.

Facing a NSF Check

When the trader receives an NSF check, the bank sends him a certificate of rejection for lack of provision. He can then to appeal against the check issuer (the debtor).

The appeal shall take the form of a two-stage procedure:

  1. Mutual agreement procedure : the trader has 30 days to ask the debtor to regularize the situation within 30 days, by entering into his bank account or by paying by another means. We put a letter template at your disposal.
  2. Forced procedure : if the amicable procedure fails (no regularization), the trader can request a certificate of non-payment at his bank. We're putting on another letter template at your disposal. A commissioner of justice (formerly a bailiff and a judicial auctioneer) can thus serve the certificate on the debtor. The significance as a command to pay, the debtor is obliged to settle his debt in a 15-day period. If the payment is not regularized within this period, the Commissioner of Justice can then initiate any procedure to compel the debtor to pay (e.g.: wage attachment). The debtor shall bear the costs of the compulsory procedure.

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