The trend toward a cashless society is gaining momentum, with an increasing number of retail spaces notifying customers that cash payments are not accepted, according to DECO PROTeste. So, is this practice permitted by merchants?
Over the years, there have been numerous reports of cash being declined. This is particularly evident in bars and restaurants within music festival venues, which do not accept cash payments, offering only options like credit card payments, mobile apps such as MB Way, or pre-paid festival cards that require cash loading, notes the consumer protection organization.
Are merchants required to accept cash?
DECO PROTeste clarifies that, although Portugal ranks among the eurozone countries where the use of physical money has significantly decreased between 2022 and 2024, according to the SPACE study by the European Central Bank (ECB), merchants cannot refuse cash payments.
Banknotes and coins must be accepted for all transactions conducted within national territory, regardless of their nature. Even if a merchant displays or disseminates notices indicating that cash payments are not accepted, this refusal is generally inadmissible unless a legitimate reason is cited, as stated by the organization.
Nevertheless, the law does not prescribe any penalty for merchants who refuse cash payments.
DECO PROTeste emphasizes the importance of safeguarding the interests of all consumers, particularly those without access to bank cards or electronic payment methods.
Providing consumers who wish to pay in cash with a pre-paid card charges a fee, which creates unequal treatment between consumers using electronic or card payments and those preferring cash. The consumer protection organization asserts that while it is important to keep up with new trends, certain rules must be adhered to.
