According to the Bank of Spain, card payments accounted for 65.7 percent of all transactions last year.
They also revealed that cards are the most widely used payment method in Spain for small payments, while bank transfers are used for larger transactions.
It's important to note, however, that cash payments are still widely accepted and are preferable in many more rural areas. Cash payments are also still protected by Spanish law.
Can a business in Spain actually force you to pay with card and refuse cash though?
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The quick and easy answer is no. Businesses like shops, bars and restaurants can't make you pay with card if you want to pay with cash.
The law states that establishments that open to the public must accept cash payments, provided they respect the limits set by tax regulations to prevent fraud.
Royal Decree-Law 24/2021 states that it is an infringement to refuse to accept cash.
Authorities can even sanction businesses that violate this rule. Fines can range from €100 up to €10,000, but could be higher in specific circumstances.
The Ministry of Consumer Affairs has confirmed that sanctions have already been imposed on companies who have refused cash payments.
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The rules don't work the other way around though. Although businesses are legally required to accept cash, they are not obligated to accept bank cards. Each business can choose to have a card reader or not. They can also limit the use of card readers if they choose.
This means for example, they can require a minimum purchase amount for card payments. In some bars for example there can be a €10 minimum, so that you can't pay just for a coffee electronically for example.
According to consumer law experts though, these rules must be clear before you make the purchase. The means they must have a visible sign saying 'cash only' or '€10 limit for card payments'.
If this information is not displayed, the business could be in violation of the rules.
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There are also regulations when paying with cash though too. Currently, cash payments between consumers and businesses cannot exceed €1,000, but the limit between individuals is higher.
The rules remain that for normal purchases in customer-facing establishments cash payments are perfectly legal and acceptable.
If an establishment tries to force you to use a card without a justified reason, you can request a complaint form called an hoja de reclamaciones or contact the relevant consumer protection organisation.
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