New cash payment limits. End of usage of cash

European Union launches limitations on cash paymentswhich will cover all associate States, including Poland. New regulations are expected to enter into force in 2027 and relate to transactions exceeding EUR 10 000, or about 42 1000 zlotys. What does this mean for Polish consumers and entrepreneurs? Will cash shortly be out of circulation? Here are the details of the upcoming changes.

Cash payment limit – what are the fresh rules?

Decision of the European Union to introduce a cash payment limit was taken on 24 April 2024. The aim of the changes is to Combating money laundering and terrorist financingand increase transparency of transactions.

Key assumptions of the fresh legislation:

• The maximum amount of cash payment will be EUR 10 000 (about PLN 42 thousand). In transactions exceeding this threshold, electronic payments will should be used.
• Transactions over EUR 3 000 (about PLN 13 000) will require verification of client identity. The seller will be required to check the buyer's identity card and study the transaction to General Financial Information Inspector (GIIF).

These limitations mean that e.g. buying a car for cash will become impossibleand larger transactions will should be carried out by bank transfer or another non-cash forms of payment.

What provisions are already in force in Poland?

In Poland akin regulations already exist, though on a smaller scale. Currently:

• Entrepreneurs may not pay in cash over PLN 15 thousand. Any transaction above this threshold must be executed through a bank account.
• Initially, the limit was planned to be reduced to PLN 8,000 for entrepreneurs and the introduction of a limit PLN 20 000 for transactions between the company and the consumer. These changes were to enter into force in 2024, but they were yet abandoned.

Compared to these rules, fresh EU regulations will mainly affect private individuals who have been able to usage cash freely for larger purchases so far.

Is cash simplification the end of conventional payments?

Although the cash payment limits are increasingly restrictive, This does not mean the full withdrawal of cash from circulation. Poles are inactive eager to usage banknotes and coins, and investigation shows that even in the digital age About 30% of transactions in Poland are inactive carried out in cash.

On the another hand, the number of electronic payments is expanding – BLISTER, credit cards and online transfers They're getting popular. This is affected not only by convenience, but besides by an expanding number of regulations reducing the anonymity of cash payments.

What are the chances of breaking fresh laws?

Persons and companies who will not comply with the fresh limits, may have severe consequences:

• For transactions above EUR 10 000 threat fines and administrative penalties.
• No payment declaration above EUR 3 000 to GIIF may consequence financial penalties and legal consequences.
• Since 2027, the EU has entered into force a cash payment limit of up to EUR 10 000 (PLN 42 000).
• Transactions over EUR 3 000 (PLN 13 000) will require identity verification and notification to GIIF.
• In Poland there are already restrictions for entrepreneurs – the maximum amount of cash payment is PLN 15 thousand.
• Non-cash payments will gain in importance, but cash will not vanish completely.

These changes may affect the regular lives of Poles, especially those who like cash in larger transactions. It is worth preparing for upcoming regulations and start utilizing secure forms of electronic payment.