Can companies refuse cash payments? Only if there is a prior agreement between the parties

 

In the business environment, it is common for companies to prefer receiving payments through electronic or bank means, both for security and accounting control. However, the law does not allow cash payments to be refused, unless the parties have expressly agreed on another payment method or the transaction exceeds the limits established by regulations.

When can a company refuse a cash payment?

Only in two situations:

1. If there is a prior agreement between the parties determining the use of another payment method (transfer, card, etc.).

2. If the amount exceeds the legal limits established in Law 11/2021 on measures to prevent tax fraud:

   • 1,000 euros (or its equivalent in foreign currency) when involving a business owner or professional.

   • 10,000 euros if the payer is a natural person without tax residence in Spain and does not act as a business owner or professional.

Outside of these cases, companies cannot refuse cash payments.

What is considered "cash" according to the law?

In addition to physical money, the regulations expand the concept to various instruments and payment methods:

• Banknotes and coins, national or foreign.

• Negotiable instruments or bearer instruments, such as traveler's checks, promissory notes, or payment orders without identified beneficiary.

• Non-nominative prepaid cards, which allow storing or accessing funds for purchases or cash withdrawals.

• Highly liquid commodities, such as gold used as a store of value.

What happens if the cash payment limits are exceeded?

Both the company and the customer incur a serious administrative offense, according to the Tax Agency.
The AEAT can impose sanctions on one or both parties, as both are jointly liable.

Therefore, it is essential for companies to adopt internal protocols for payment controls, review payment agreements with their customers, and verify compliance with legal limits in all their operations.

Cash remains a valid payment method, but not an absolute one.
Companies can only reject it when there is a prior agreement or the amount exceeds legal limits. In any other case, refusing to accept cash can be considered a violation of the payer's rights and may result in sanctions.