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Some merchants refuse payment by cheque… Do they have the right to do so? What are the conditions of this refusal?
Yes, if the amount is derisory
A merchant can refuse a payment by check when the amount to be paid is derisory: this is the case, for example, if it is an amount of less than 1 euro. However, the notion of “derisory amount” not being defined by law, it is therefore left to the merchant’s discretion. Refusal of payment by check is also accepted when it is customary to pay in cash (for a coffee, a baguette, etc.). Indeed, in this case, the costs of cashing the check are then higher than the amount of the transaction. The only means of payment that a trader cannot refuse is so-called “fiduciary” money, ie coins and banknotes issued in euros.
Yes, if I am informed
If he has previously informed his customers, a merchant may refuse payment by check. This information must be provided by sufficiently visible display, marking or labelling. Failing this, he will have to accept payment by cheque. A trader can also refuse a check after consulting the national file of irregular checks (FNCI) held by the Banque de France, but on condition that he has informed his client of this at the latest at the time of payment.
Yes, if I can’t prove my identity
The merchant can also refuse payment by check if the issuer of the check is unable to prove his identity. Indeed, the law requires that: “Anyone who issues a check in payment must prove his identity by means of an official document bearing his photograph. The merchant is therefore entitled to request the production of one or more proofs of identity. If he fails to do so, he may even be held liable to the holder of an account whose check may have been stolen.
No, in some cases
There are cases where the merchant is required to accept payment by check. This is the case if he is a member of an approved management centre. In this case, he benefits from certain tax advantages which oblige him, in return, to accept payment by check and to inform his clients. The merchant is also required to accept payment by check for an amount greater than 3,000 euros. It is a legal obligation for the merchant and has been put in place to combat tax evasion and money laundering.
DAMY law firm , Nice, Can I be refused payment by check?; 2022 Update
