Which Payment Methods Are You Obliged to Accept from Your Customers?

More and more businesses in France are restricting their customers' payment options. Depending on the preferences of the merchant, some payment methods may be refused while only a few are accepted. Is this legal? Can a business legally refuse a specific payment method? We explain everything below.

What Are the Traditional Payment Methods?

Traditionally, an invoice can be paid in cash or by check. To ensure the security of your payment methods, each option comes with specific guidelines.

Payment in Cash

This involves customers paying for their purchases using coins or bills – it’s cash! By law, you are obliged to accept cash payments up to a certain limit.

As a merchant or professional, you can accept cash payments up to €1,000 from your customers. However, this amount can go up to €15,000 when the buyer's tax residence is located abroad and the expenditure is for personal use.

Can You Refuse Cash Payments?

In principle, cash payments should not be refused. The law prohibits merchants from refusing cash under penalty of fines up to €150.

However, there are exceptional situations where you may refuse cash payments:

• When the customer pays you in foreign currency, as the legal tender in France is the euro, you are allowed to refuse other currencies.
• When the bills appear to be counterfeit or are in poor condition.
• When the invoice is paid with more than 50 coins.
• For security reasons: for example, if you run a night business, you may refuse cash payments.
• Due to lack of change: if you do not have sufficient change, you are not required to accept cash payments.

If you cannot accept cash, you are required to accept alternative payments such as checks, bank transfers, etc.

Checks

Checks are a classic payment method used to transfer money from the consumer's bank account to yours.

The check issuer must:

• Indicate the amount in both figures and words.
• Clearly specify the name of the beneficiary (your business or its legal representative).
• Sign the check.
• Fill in the amount section completely, leaving no blank spaces.
• Include the date of payment.

Note: You are entitled to request proof of identity from the purchaser.

Once you receive the check, you must endorse and deposit it as soon as possible. Depending on the bank, the deposit period can range from 2 to 15 days.

Can You Refuse Check Payments?

You can refuse check payments in some cases:

• When the amount is negligible, such as for a loaf of bread or grocery items.
• When the check processing fees significantly exceed the payment amount.

Note: It is illegal for merchants to refuse payment based on the buyer’s bank location and favor a partner institution.

In any case, you are not obligated to accept checks for transactions, provided you inform your customers in advance with visible and legible signage.

What Are Electronic Payment Methods?

There is a wide variety of electronic payment methods: physical bank cards, online payment platforms, bank transfers, and more.

Bank Cards

Payment by credit or debit card can occur during a physical transaction at your store or via online payment.

Physical Card Payment

This is the most preferred method by the French. To accept this payment option, you must have a mobile terminal in your store. The buyer then connects to the device and enters their PIN.

It's also possible to make contactless or "over-the-phone" payments. The buyer simply holds their card within 4 centimeters of the terminal. It works similarly to NFC payment, such as with Paywish, without needing to enter a PIN.

You have the option to refuse this payment method if desired. You can also choose to accept payments from certain companies and not others, provided you inform your customers and specify it in your terms and conditions.

Online Card Payment

The majority of online transactions are processed via bank cards. Once the buyer places an order on your platform, they enter their personal details such as the 16-digit number, expiration date, and security code to complete the transaction.

However, there are risks of data corruption when using dubious payment terminals. If needed, you can try our reliable and secure Pay On Site terminal solution.

Online payment is an option. While not mandatory, it is worthwhile to offer this payment method, especially if you operate in e-commerce.

Online Payment Platforms

Online platforms provide a convenient alternative to traditional methods. They offer many advantages: speed and convenience.

To integrate this payment method on your website, PayOnline is likely your best ally.

Although not mandatory, this method is also desirable for online sales platforms.

Bank Transfers

A bank transfer is a direct transfer of money between two accounts. The transaction is processed based on an order given by the buyer to their bank. While not required for specific professionals, you are obligated to comply with European legislation if you choose to accept payments via direct debits or transfers.

If you're based in France, you must accept payments from any customer with an account in another European Union country.

Direct Debit

Similar to transfers, direct debits involve bank-to-bank transactions. However, the transfer is initiated directly by the financial institution where the debited account is held.

This payment method uses a SEPA direct debit mandate and is ideal for service companies that generate regular invoices (e.g., electricity, gas bills). Though not mandatory, this method is beneficial if you offer a service involving recurring bills.

What Fees Apply Based on the Payment Method Used by Your Customers?

Regardless of the payment method your customers use, the fees must remain the same. The law prohibits charging additional fees based on the payment method.

The Directorate-General for Competition, Consumer Affairs, and Fraud Control (DGCCRF) conducts random on-site inspections to ensure this rule is followed, with fines of up to €75,000 for individuals and €375,000 for legal entities.

What Is Digital Payment?

Digital payment or "cashless" payment is a transaction made either online or through a digital device. It can be done via a phone or any other device connected to a mobile network. With just an email address or an account, the payment is completed!

In essence, digital payments facilitate sales and purchases using digital or electronic platforms. Generally, this payment method is enabled by a support application that helps merchants process transactions more quickly.

Some digital payment services include QR codes, wallets (Google Wallet, etc.), allowing you to:

• Manage your accounts easily.
• Save money.
• Better control every payment and your overall revenue.
• Collect payments from customers and suppliers remotely.
• Get regular updates on cash flows, spending trends, and cash management.

Why Will Digital Cards Dominate the Future of Payments?

Digital transactions are becoming dominant both in business and the institutional banking landscape. Banks increasingly offer digital cards (e.g., Google Pay, Apple Pay), which provide better protection against fraud. The digital card is instantly issued into your customer’s mobile wallet and can be used immediately for payment. The amount is directly debited from the consumer's account, minimizing fraud risks.

Due to their convenience and security, digital solutions will likely dominate most online and in-store transactions in the coming years, not only in France but globally. So, don’t hesitate to adopt a digital payment service and integrate it into your business’s web page.