Friday, June 03, 2022
The Royal Decree 24/2021 or General Law for the Protection of Consumers and Users which makes it mandatory for retailers to accept cash entered into force on 28 May. Refusing a payment in cash is considered a violation of the law.
The refusal of a payment in cash is considered a minor offence, but can become serious or very serious under certain conditions, for instance, if a retailer takes advantage of the need for certain products or services, or if a retailer repeatedly refuses cash payments and thereby causes serious, unjust, and unforeseeable social disturbances.
“With this regulation, which was created with the aim of ensuring the protection of vulnerable groups or consumers, the use of cash is guaranteed, as a fundamental element to protect their rights ,” said the General Director of Consumption, Bibiana Medialdea, at a recent conference on ‘Access to cash, a universal right and a barrier against financial exclusion’, organized by the Denaria Platform, an association for the defense of cash.
This legislative measure is fully supported by popular opinion, as shown by the September 2021 Survey on the need for the permanence of cash, commissioned by the Denaria. 90% of Spaniards defend the need for cash as a method of payment, more than 70% of the population considers that cash is necessary in our society, and 77%, moreover, describe it as a ‘public good’.
In spite of this new legislation, Spain continues to impose a limit on cash payments exceeding € 1,000 when at least one of the parties involved in the transaction is acting in a professional capacity. In March 2022, the European Central Bank vehemently criticised the measure in a published opinion.
“Against this background, the ECB considers the lowering of the limit on cash payments in transactions where any of the parties acts in a professional or business capacity to EUR 1 000 to be disproportionate. It will have an adverse and undesired impact on the legal tender status of euro banknotes. In addition, this cash payment limit significantly reduces the ability of payers to use euro banknotes and the freedom of citizens to choose how to pay.”
Opinion of the European Central Bank of 15 March 2022 on limitations to cash payments
The Denaria platform has formulated three recommendations to ensure future access to cash.