In France, cash (banknotes and coins) is legally regulated as a means of payment. As a general rule, refusing to be paid in cash is prohibited, except where French law specifically forbids cash payments or provides limited exceptions. These rules matter in practice for businesses, creditors, and debt collection, because an unlawful refusal of cash can trigger penalties, and accepting cash above legal thresholds can also expose both parties to sanctions.
This article explains:
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the ban on refusing cash,
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the exceptions (coins and change),
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the situations where cash must be refused due to legal ceilings,
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the sanctions,
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the rules for electronic money, tokens, and SMS payments,
- the rules for payments in crypto-currencies.
1. Prohibition on refusing cash payment (general rule)
1.1 Principle: it is forbidden to refuse cash
It is forbidden to refuse to be paid in cash, except in situations where the law prohibits paying in cash.
1.2 Criminal classification and fines
An unjustified refusal to accept cash constitutes a second-class offence under French Criminal Code, Article R. 642-3.
The fine incurred is:
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€150 when proceedings target an individual (French Criminal Code, Article 131-13)
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€750 when proceedings target a company or other legal entity (French Criminal Code, Article 131-41)
1.3 Case law examples (as provided)
Example 1 — “No cash storage”: conviction upheld
A transport company refused all cash payments because it was not equipped to store or transport cash and accepted only cheques. The director was fined (€100). The Court of Cassation upheld the conviction on the basis of Article R. 642-3 of the Criminal Code: Cass. crim., 3 October 2007, no. 07-80045.
Example 2 — Parking meters without coins: no offence found
Conversely, a system requiring a prepaid card as the only payment method for on-street parking in Paris was not considered an offence under Article R. 642-3: Cass. crim., 26 April 2006, no. 06-80263.
2. Exceptions to the obligation to accept cash
The prohibition on refusing cash is not absolute.
2.1 Limit on number of coins: maximum 50 coins
Merchants are not required to accept more than 50 coins in a single payment. Coins are legally treated as “monnaie d’appoint” (small change currency). This rule is based on:
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French Monetary and Financial Code, Article R. 112-2
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Council Regulation (EC) No 974/98 of 3 May 1998 (as amended), Article 11
2.2 The debtor must provide exact change
“In the case of payment in banknotes and coins, the debtor must provide exact change.”
This is stated in French Monetary and Financial Code, Article L. 112-5.
Example — €500 banknote refused for a small purchase: the refusal was held lawful
A store manager was fined €150 for refusing a €500 banknote from a customer. The Court of Cassation quashed the conviction because the purchase amount was €51.13 and it was for the customer to provide exact change: Cass. crim., 14 December 2005, no. 04-87536.
3. When cash payment is legally forbidden (cash ceilings and mandatory refusal)
Beyond certain thresholds, a merchant (or creditor) must refuse a cash payment. The applicable ceiling depends on:
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the debtor’s tax domicile,
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whether the operation is professional or not,
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and whether the payment is made to a person subject to anti-money laundering and counter-terrorism financing obligations.
The governing principle is in French Monetary and Financial Code, Article L. 112-6, with the amounts set by Article D. 112-3.
3.1 The €1,000 ceiling (France tax domicile or professional needs)
Cash is capped at €1,000 when:
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the debtor has their tax domicile in France, or
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the debtor is acting for the needs of a professional activity.
3.2 The €15,000 ceiling (non-resident, non-professional, paying certain regulated persons)
Cash is capped at €15,000 when all the following conditions are met:
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the debtor proves they do not have their tax domicile in France,
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the debtor is not acting for professional needs, and
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the payment is made to a person subject to AML/CFT obligations (examples given: lawyer, commissioner of justice, chartered accountant, art dealer).
3.3 The €10,000 ceiling (non-resident, non-professional, paying a non-regulated person)
Cash is capped at €10,000 when:
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the debtor proves they do not have their tax domicile in France,
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the debtor is not acting for professional needs, and
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the payment is made to a person not subject to AML/CFT obligations.
4. Situations not covered by the cash ceilings (as stated)
4.1 Cash payments between private individuals (non-professional)
The ceiling rules do not apply to payments between two private individuals not acting for professional needs (French Monetary and Financial Code, Article L. 112-6, III, b).
So, cash payments between private individuals are not limited.
However, if the amount of the transaction exceeds €1,500, a written document is necessary to prove the reality of the payments.
4.2 Persons without a deposit account or unable to use cheques/other means
The ceiling rules also do not apply to persons who:
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do not have a deposit account, or
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are incapable of binding themselves by cheque or another means of payment
(French Monetary and Financial Code, Article L. 112-6, III, a).
4.3 Public bodies’ expenses
Expenses of the State and other public entities are not subject to these ceiling rules (French Monetary and Financial Code, Article L. 112-6, III, c).
5. Specific prohibited cash-payment categories (as listed)
5.1 Metals: cash payment prohibited
When a professional buys metals from a private individual or another professional, payment must be made by crossed cheque or bank transfer to an account opened in the seller’s name.
Therefore, any cash payment for retail metals is prohibited (French Monetary and Financial Code, Article L. 112-6, I, para. 3).
5.2 Salaries: cash prohibited above €1,500
Salaries above €1,500 cannot be paid in cash. Payment must be by:
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crossed cheque, or
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transfer to a bank/postal/payment institution/e-money institution account
(French Monetary and Financial Code, Article L. 112-6, I, para. 2).
5.3 Concession services: mandatory transfer above €450
Expenses for concession services exceeding €450 must be paid by bank transfer (French Monetary and Financial Code, Article L. 112-6, II).
5.4 Notaries: mandatory transfer above €3,000
When payments are above €3,000 and are made or received by a notary on behalf of parties to an authentic deed giving rise to land registration/publicity, they must be ensured by bank transfer (French Monetary and Financial Code, Articles L. 112-6-1 and R. 112-5).
5.5 Taxes: cash capped at €300 at tax offices
Cash payments at tax office counters are capped at €300 (French General Tax Code, Article 1680, para. 1).
5.6 Pawn loans: cash allowed up to €3,000
Payments relating to pawn loans may be made in cash up to €3,000 (French Monetary and Financial Code, Article L. 112-6, II bis and Article D. 112-3, II).
6. Sanctions for violating cash-payment restrictions
6.1 General sanction (Article L. 112-7)
A debtor who pays in violation of Articles L. 112-6 and L. 112-6-1 is liable to a fine whose amount depends on the seriousness of the breach and may not exceed 5% of the sums paid illegally.
Importantly, the debtor and the creditor are jointly liable for payment of this fine (French Monetary and Financial Code, Article L. 112-7).
6.2 Metals: separate offence classification and higher maximum fine
Paying for metals in cash constitutes a fifth-class offence, punishable by a fine up to:
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€1,500 for an individual, and
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€7,500 for a legal entity
(French Monetary and Financial Code, Article L. 112-6, I, para. 3).
6.3 Territorial scope: rules apply to payments made in France
The rules of Article L. 112-6 apply to all payments that take place in France, regardless of the law governing the contract. Consequently, the fine does not apply to payments made abroad by a company established in France: Conseil d’État, 10 May 2012, no. 337573.
7. Electronic payments: electronic money and tokens (as defined)
7.1 Definition of electronic money
Electronic money is a monetary value stored in electronic form (including magnetic form), representing a claim on the issuer, issued against funds for payment operations and accepted by persons other than the issuer (French Monetary and Financial Code, Article L. 315-1). Examples:
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gift cards,
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prepaid bank cards,
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electronic wallet (“porte-monnaie électronique”) storing a small amount for low-value payments.
7.2 Payment ceilings for electronic money
Payments may be made using electronic money up to:
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€3,000 when the debtor has tax domicile in France or acts for professional needs;
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€15,000 when the debtor proves they are not tax domiciled in France, not acting professionally, and the payment is made to a person subject to AML/CFT obligations;
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€10,000 in the non-resident/non-professional scenario where the recipient is not subject to AML/CFT obligations (French Monetary and Financial Code, Article L. 112-6, I and Article D). 112-3, I.)
7.3 Extension since 18 October 2024
Since 18 October 2024, these rules also apply to:
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electronic money tokens, and
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tokens referring to one or more assets
(French Monetary and Financial Code, Article L. 112-6, I).
7.4 Sanction for breaches
If the debtor pays in electronic money or tokens in violation of legal rules, they face a fine:
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set according to the seriousness of the breach,
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capped at 5% of the sums paid illegally,
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with joint liability of debtor and creditor
(French Monetary and Financial Code, Article L. 112-7).
7.5 Exceptions to these ceilings (as stated)
Ceiling rules do not apply to payments made:
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in electronic money within the framework of Regulation (EU) 2022/858 (pilot regime for DLT market infrastructures), and amending certain EU instruments;
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in electronic money tokens or asset-referenced tokens where the identities of debtor and creditor have been verified under Title VI of Book V of the Monetary and Financial Code or equivalent provisions
(French Monetary and Financial Code, Article L. 112-6, III, d and e).
8. SMS payments: permitted uses and strict caps
8.1 General uses
Donations to certain associations may be made by SMS (see below).
Telecom operators may also allow subscribers to pay by SMS for:
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electronic tickets (transport, parking, museum access, etc.),
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digital content and voice services (video downloads, telephone information services, etc.), regardless of the device used.
8.2 Transaction and monthly limits
French regulation does not allow an SMS payment to exceed €50.
In addition, SMS expenses of a mobile user cannot exceed €300 per month (French Monetary and Financial Code, Article L. 521-3-1).
9. SMS donations to associations: conditions, amounts, AF2M costs (as provided)
Organizations that solicit public generosity may receive donations by SMS, but must:
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launch an appeal to donations supporting a scientific, social, family, humanitarian, philanthropic, educational, sports, cultural cause, or environmental protection;
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establish an annual statement of use of collected resources specifying allocation of donations by expense type;
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file a declaration of public fundraising appeal with their prefecture.
9.1 Obtaining an SMS short code: AF2M
To obtain an SMS number, associations must apply to AF2M (Association française du multimédia mobile), which sets annual financial conditions.
For 2024, the application fee and royalties are:
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€665 excl. VAT application/reservation file fee, then
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€285 excl. VAT annual royalty (calendar year)
Once accepted, the association receives a 5-digit short code starting with 9.
9.2 Donation amounts and monthly cap per subscriber
Donation amounts range from €1 to €20. The total amount of donations per subscriber and per organization is limited to €50 per month.
10. Cryptocurrencies
Cryptocurrencies such as Bitcoin, Ether or stablecoins are not legal tender in France. Unlike banknotes and coins issued by the European Central Bank, crypto-assets do not have mandatory acceptance status.
As a result:
- No creditor or merchant can be forced to accept cryptocurrency as payment.
- Refusing payment in cryptocurrency does not constitute an offence, unlike the refusal of cash in euros.
Cryptocurrencies are legally classified as digital assets (crypto-actifs) under French law, not as currency.
Consequently, the cash payment ceilings (e.g. €1,000 / €10,000 / €15,000) set out in the French Monetary and Financial Code do not apply as such to cryptocurrencies, because crypto-assets are not cash and not electronic money.
However, this does not mean that crypto payments are unrestricted. Cryptocurrency transactions are subject to strict anti-money laundering and counter-terrorism financing rules.
