Electronic and cash payments
UK decision to invoke Article 50 of the TEU: More information
As of 30 March 2019, all EU law will cease to apply to the UK, unless a ratified withdrawal agreement establishes another date, or the European Council and the UK decide unanimously to extend the two-year negotiation period. For more information about the legal repercussions for businesses:
EU rules on payments in euro mean that you and your customers can make and receive electronic transactions easily. The rules, which apply to cross-border payment in euros and Swedish Krona within the EU, mean that banks can't charge you or your customers more than it would for an equivalent national transaction. Even banks based in EU countries outside the euro area must apply this rule.
Card surcharges are not allowed
You're not allowed to charge your customers extra for using a credit or debit card. This applies to all card purchases (in shops and online) made throughout the EU.
A ticket sales and distribution company charges its customers EUR 6 for using a credit card when they buy a ticket online. A customer is not happy and complains to their local consumer centre. The consumer centre confirms that the surcharge is not allowed. They contact the ticket company and ask them to immediately remove the surcharge from their online payment tool.
Non-discrimination – payments
You are free to accept whatever payment methods you want, but if your customers want to pay electronically (e.g. direct debit or card-based payment) in a currency that you support, you must accept the payment irrespective of where they or their payment service providers are located within the EU.
A customer based in Belgium purchases a new pair of shoes from a German online shop using a Finnish VISA card; the German company must accept the payment because their website states that EURO VISA cards are an acceptable method of payment.
Anti-money laundering and terrorist financing rules
Whether acting as a business owner or as an individual, you should apply certain measures when you are entering into a business relationship or carrying out occasional transactions with customers to prevent money laundering and terrorist financing.
These measures apply for a single operation or in several operations that appear to be linked, if you are:
- trading in goods, and payments are made or received in cash for EUR 10 000 or more
- carrying out an occasional transaction that amounts to EUR 15 000 or more
- a provider of gambling services involved in the collection of winnings or the wagering of a stake, when carrying out transactions amounting to EUR 2000 or more
In these situations you have to apply customer due diligence, including identifying and verifying the identity of the customer as well as the beneficial owner - that is any person who ultimately owns or controls your customers, or on whose behalf the transaction was conducted. If you suspect any suspicious activity you should report it to the financial intelligence unit (FIU) in your EU country.