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MONEY

Can businesses in Italy legally refuse card payments?

Despite an increase in electronic transactions in recent years, Italy is still a cash-reliant economy – but can shops in the country actually turn down card payments?

Published: 9 May 2024 13:50 CEST
Updated: 12 May 2024 11:47 CEST
A tobacconist's stall in Naples' Forcella district.
A tobacconist's stall in Naples' Forcella district. Photo by Alberto PIZZOLI / AFP

Though the use of electronic payments has significantly increased in recent years – the value of cashless transactions recorded a 13-percent year-on-year increase in the first half of 2023 – Italy is still one of the most cash-reliant economies in the world. The country ranked 28th out of 144 nations in the 2024 Cash Intensity Index published by the Cashless Society Community think-tank.

And while an increasing number of shops, cafes and tabaccherie (tobacco shops) around the country accept card payments, producing a debit card or mobile phone to pay for an espresso may still be met with a pained expression and a solo contanti (‘cash only’) request in some parts of the country.

But can businesses in Italy lawfully turn down card payments? 

From a legal point of view, there seems to be very little room for confusion.

Under Article 15 of Decree 179/2012, all businesses offering items or services to the general public are required to accept card payments of any amount from at least one type of credit card, one type of debit card and prepaid cards.

READ ALSO: Can I open a bank account in Italy as a non-resident?

In November 2022, Giorgia Meloni’s administration proposed a law amendment allowing merchants to refuse card payments for amounts under 60 euros, but the plan was later scrapped following pressure from the EU. 

The requirement applies to all kinds of businesses dealing directly with the public, including: 

  • Shops and street vendors
  • Blacksmiths, carpenters and plumbers
  • Accountants, notaries and lawyers
  • Healthcare professionals
  • Restaurants, bars and cafes
  • Hotel, B&B and guest houses

As of June 30th 2022, there are also penalties for non-compliance, with businesses caught refusing card payments facing “a 30-euro administrative fee plus four percent of the value of the transaction previously denied” unless they can prove that their point-of-sale terminal had a malfunction.

For instance, in the case of a 100-euro transaction, the merchant who did not accept payment by card is liable to receive a fine equal to 34 euros (30 plus 4, i.e. 4 percent of 100).

Having said that, while the law does compel business owners to accept card payments and fines are in place for those flouting the rules, the extent to which the requirement has been enforced so far remains unclear, with some shops in the country still insisting on cash-only transactions, especially for small sums.

READ ALSO: What is Italy’s marca da bollo and how do you get one?

The enforcement of any rules involving electronic payments is up to Italy’s financial police (Guardia di Finanza).

Customers who are denied the option of paying by card can report the business in question to the police by calling the Guardia di Finanza at toll-free number 117 or alternatively by filing a report at the nearest station.

Member comments

  1. Italy has the least-reliable EFTPOS machines in the world. It’s amazing how often they are not working!

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DRIVING

MAP: Where in Italy is car insurance cheapest – and most expensive?

Italy is one of the most expensive countries in Europe when it comes to vehicle insurance – but some parts of the peninsula are far pricier than others.

Published: 10 May 2024 16:08 CEST
Updated: 14 May 2024 09:24 CEST
MAP: Where in Italy is car insurance cheapest - and most expensive?

Car insurance has been in the news in Italy this week following media reports of an emerging insurance evasion tactic that sees growing numbers of Italian motorists dodge steep coverage charges by having their vehicle registered in another EU country, with Poland being the most popular choice. 

The phenomenon, which is estimated to have already led to the presence of over 50,000 foreign-plate vehicles in the country, follows major increases in car insurance costs in recent years, with the average cost of third-party liability insurance (Responsabilita’ Civile or RC in Italian) rising by over 10 percent in the past two years.

But, as consumer groups say these increases are “totally unjustified”, how much does insuring a vehicle currently cost in Italy?

According to the latest available data from Italy’s insurance supervision authority IVASS, the average cost of the compulsory RC coverage – this only covers the costs of damage and injury to other parties – is 395 euros a year. 

For reference, minimum compulsory insurance costs motorists in Germany 304 euros a year on average, whereas drivers in Greece and Poland spend an average of 145 and 120 euros respectively every year, according to data from national auto repair shop association Federcarrozzieri.

READ ALSO: How can you lose your driving licence in Italy?

It’s also worth noting that motorists in Italy often choose to tack on one or more optional insurance policies (these are known as ‘additional guarantees’ or garanzie accessorie) to their basic RC coverage, with additional expenses amounting to somewhere between 400 and 500 euros in some cases.

While there is no publicly available data on how the costs of insurance add-ons vary around the country, IVASS regularly publishes a breakdown of the cost of RC coverage by Italian province.

The latest available report, which refers to data collected in February 2024, shows stark differences in insurance charges around the country, with a 280-euro gap separating the most expensive province (Naples) from the most affordable one (Enna, Sicily).

Besides Naples (569 euros a year on average), the list of ten most expensive Italian provinces for basic RC policies is completed by: Prato (565 euros), Caserta (508), Florence (483), Pistoia (482), Massa-Carrara (480), Lucca (464), Pisa (454), Roma (451) and Genoa (441).

Six of these provinces are located in Tuscany.

READ ALSO: The key vocabulary you’ll need for taking your driving test in Italy

On the other end of the spectrum, Enna (289 euros a year) is followed by: Oristano (297), Potenza (301), Pordenone (312), Vercelli (315), Biella (316), Aosta (316), Campobasso (321), Trento (322), Udine (324) and Gorizia (325).

What’s behind these differences?

The cost of Italy’s RC policy varies depending on the characteristics of the vehicle needing insurance as well as a driver’s personal details, with their location playing a major role in the final bill.

In particular, insurance costs are higher in areas with a high frequency of car accidents (hence why insurance tends to be more expensive in large metropolitan areas than in rural areas) and in areas with high rates of insurance fraud and insurance evasion (an estimated 2.6 million vehicles circulate in the country without the mandatory RC coverage).

Though Giuseppe Conte’s government in 2018 advanced plans to standardise the cost of basic RC insurance and apply the same charge (or tariffa unica) to all motorists around the country, these were later abandoned following consumer groups’ concerns that the new system would ultimately penalise drivers in “the more virtuous provinces”.

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