The EU is preparing a law to fine shops that refuse cash. In Portugal, refusing it currently carries no penalty
The European Union is preparing a law under which shops and cafés in eurozone countries will be penalised for refusing cash, the newspaper Público reported on 7 November (ECO). Euro banknotes and coins are legal tender and, as a general rule, must be accepted. But in Portugal there is currently no fine for refusing them.
In a reply to parliament, the Bank of Portugal admitted that it cannot make shops accept cash. MPs had asked about Transtejo Soflusa, the company that runs the ferries between Lisbon and the south bank of the Tagus, whose ticket offices have stopped taking cash.
The law in question is the EU regulation on euro cash, which the European Commission proposed in June 2023 (the draft on EUR-Lex). Under the draft, a seller cannot refuse cash unless the buyer has agreed in advance to pay another way, and a "card only" sign does not count as such agreement. Charging extra for paying in cash will not be allowed either.
Shops will be able to refuse cash only temporarily and for good reason: for example, if the note is too large for the purchase or the till has no change. It will be up to the shop to prove that it had such a reason. Each country will set its own fines and will have a year after the law comes into force to do so. Countries will also have to make sure that people can withdraw cash everywhere, including in villages.
The Council of the EU agreed its position on the law in December 2025, and the European Parliament agreed its own in July 2026. They are now negotiating the final text and aim to finish by the end of the year. It has not yet been decided when the rules will apply in Portugal or what the fines will be.
