What are the rules on paying in cash in France?

Cash may be on the decline, but it is still used in around half of payments in France – and the amount permitted is subject to legal definition depending on the transaction. Here are the rules.

What are the rules and limits on paying in cash?

Shopkeepers are allowed to refuse payment by card or cheque (subject to certain rules), but they are not allowed to refuse cash below certain limits.

Article R642-3 of the Penal Code states that “refusing to accept coins or banknotes that are legal tender in France at their face value is punishable by a fine for a second-class offence” (€150).

However, there are limits. These are:

• Shopkeepers are not required to accept more than 50 coins in a single transaction.

• The person paying must provide the exact amount, if they are paying in cash and coins. If the seller does not have enough change, they are allowed to refuse the payment.

• Shopkeepers can refuse torn or illegible notes, or cash that they suspect to be counterfeit.

Wages can also be paid for in cash, up to €1,500 per month. Above this amount, it must be paid by cheque or bank transfer.

Payments for certain property transactions may also be made in cash, to the maximum of €3,000, via a notaire. Above this amount, these payments must be made by bank transfer.

You can also pay up to €300 at a public finance counter for any tax payments.

Are there limits on cash payments?

Yes. Because criminals prefer to use cash (as it is less traceable), the limit for business cash transactions is €1,000. For example, if you are paying a tradesperson at your home.

However, there are exceptions, including:

• Individual, non-professional transactions (e.g. privately selling a car). There are no limits here, but a written document is needed for amounts above €1,500. This document can be, for example, a certificate or sales contract, to prove the origin and legality of the transaction. Without this document you may be at risk of tax or legal disputes.

• People who are not resident in France for tax purposes and not acting in a professional capacity (limit: €10,000 per transaction)

• Foreign tourists not acting in a professional capacity (limit: €15,000 per transaction)

• People who do not have bank accounts and therefore cannot use a credit card, e.g. minors

Those who wish to use cash using one of the three latter exceptions must provide proof of their identity and/or tax status.

People found to be exceeding these amounts for a professional transaction can be liable for a fine of up to 5% of the amount paid illegally in cash. The individual paying the cash is liable for half of this fine, while the other half must be paid by the professional who accepted the cash payment.

By 2027, a new European regulation will restrict cash payments for professional/business transactions to €10,000. However, each member state will be permitted to enforce their own limits if they choose, so it is likely that France’s limit will remain at €1,000 (save the exceptions outlined above).

What if a shopkeeper illegally refuses my cash payment?

If a shopkeeper refuses payment and you believe they are wrong, you can report them to your local departmental directorate for the protection of populations (la direction départementale de la protection des populations).

You can also report them via consumer service Signal Conso, and the legal rights department le Défenseur des Droits.