According to DECO PROTeste, payment in cash generally cannot be refused. However, there are certain exceptions as “the law provides some situations where cash payments can be refused.”
These exceptions include:
- when the denomination of the note presented is not proportional to the expense being paid;
- when there is a mutual agreement between the merchant and the consumer to use a different payment method;
- when the amount to be paid exceeds 3,000 euros or its equivalent in foreign currency;
- for payments exceeding 10,000 euros made by non-resident individuals, provided they do not represent a legal entity;
- for tax payments exceeding 500 euros;
- for single payments involving more than 50 coins – in this case, only the State or the Bank of Portugal are obligated to accept them.
Outside these situations, it is important to remember that “cash must be accepted in all transactions carried out on national territory, regardless of their nature.”
“Even if a merchant displays or communicates notices indicating that cash payments are not accepted, in principle, such refusal is not admissible unless a legitimate reason is invoked,” states DECO PROTeste.
