Encountering situations where merchants refuse cash payments? In the future, consumers can take action to protect their rights. On Dec. 19, the People's Bank of China (PBOC), together with the National Development and Reform Commission and the National Financial Regulatory Administration, formulated and issued the "Regulations on Cash Receipt and Payment Services in Renminbi," which will take effect on February 1, 2026.
PBOC emphasized that all administrative agencies, public institutions, public service fee-collecting entities, and business operators must comply with relevant laws and regulations on Renminbi management. They are prohibited from refusing cash payments on grounds such as "multiple operational steps" and must respect the public's right to freely choose payment methods, collectively maintaining an environment conducive to cash usage. The regulations also streamline channels for complaints and reports, with punitive measures to be imposed on entities that refuse cash.
As China's payment industry continues to evolve, the increasing variety of payment methods has introduced certain challenges to traditional cash payments. For instance, unattended stores often lack cash payment windows, leading to frequent situations where cash cannot be used for purchases. However, in the future, even these new types of scenarios must provide cash payment options.
The regulations provide clear guidelines for new issues. For example, in scenarios adopting unattended or automated self-service equipment, appropriate measures must be taken to meet the public's cash payment needs under special circumstances (such as inability to use mobile payments, network failures, or equipment malfunctions). In places like parks, industrial zones, scenic areas, and schools that adopt unified management systems, convenient cash recharge and card refund services must be provided. When cash payments are accepted through conversion methods, no handling fees or restrictive conditions may be imposed that could hinder the conversion process.
Additionally, the regulations require that when fee-collecting entities or business operators encounter members of the public attempting to pay with large amounts of coins or small-denomination banknotes beyond their normal counting capacity, they should either negotiate a solution or guide them to banking institution branches to exchange for suitable denominations before payment. Refusal to accept cash on such grounds is prohibited.
Rights protection for the public at local PBOC branches
The regulations also streamline channels for complaints and reports, with serious penalties imposed on entities that refuse cash and attract significant public attention or cause considerable impact. According to the regulations, if members of the public discover that fee-collecting entities or business operators refuse cash or discriminate against cash payments, they may preserve evidence and apply for legal rights protection at local branches of the PBOC.
PBOC, together with the National Development and Reform Commission, will publicly disclose information about penalized parties who refuse cash in accordance with laws and regulations. The PBOC and its branches have the authority to supervise and inspect instances of cash refusal. Relevant parties must provide truthful information and must not refuse, obstruct, evade inspections, or falsify, conceal, or destroy related evidence.
PBOC also pointed out that all types of business operators should enhance their staff's awareness of legal compliance, clarify that "refusing cash is illegal" and its legal consequences, optimize cash payment processes, improve the customer experience with cash payments, and must not set barriers for cash payments or refuse cash on grounds such as "multiple operational steps."
Meanwhile, the PBOC emphasized that for business operators offering online reservations or transactions with offline service or product delivery, and capable of accepting payments in person, cash payments must be supported. They must not refuse cash on grounds such as "cash is easily lost during transit."
"You can't expect newcomers to master e-payment tools immediately"
As China's visa-free circle continues to expand, the inbound tourism market has recently shown signs of recovery. However, while some foreign tourists have become proficient in using mobile payment tools like Alipay and WeChat Pay, others encounter various payment difficulties and ultimately resort to using cash for purchases.
In Beijing, a group of French middle school students traveling in China faced payment challenges at a fast-food restaurant on the famous commercial street, Dashilan. One of these students tried to order food with cash, but what usually takes just over ten seconds for ordering and payment took several minutes without success. Behind her, ten classmates were also waiting in line, holding cash to place their orders.
Statistics show that China now has over 1 billion internet users, with 99.6% accessing the internet via mobile phones, and mobile payments account for over 80% of daily consumer spending in China. For newcomers to China, still, quickly adapting to such payment methods is indeed a challenge, as they are more accustomed to using cash directly.
White, a retired lawyer from New Hampshire, the US, has visited China multiple times. Although he is aware that overseas cardholders can now bind their cards to Alipay or WeChat Pay for mobile payments, he and his friends remain reluctant to try.
"As newcomers, how can we be expected to master these payment tools immediately?"
Hanna and Odelle from the US have the same feeling. Travelling to Shanghai together as independent tourists, their main payment methods were credit cards and cash.
Hanna had heard about the convenience of mobile payments in China and tried downloading Alipay. However, after downloading the app, filling in her personal information, and receiving a verification code, she found herself unable to complete the verification process successfully. Sometimes, when she saw souvenirs she liked, if paying by card or receiving change was inconvenient, she would give up on purchasing them.
At a creative store, an Italian tourist wanted to buy a T-shirt with a Sun Wukong (the Monkey King) pattern. He first attempted to pay with Alipay, but after waiting for some time, the system displayed a "timeout" message, and the payment failed. When he tried to pay with his Visa card, it also failed to process due to a timeout. Finally, the tourist and his companion had to dig through their pockets, pulling out several 5-yuan, 10-yuan, and 20-yuan banknotes to gather 80 yuan in cash to successfully purchase the T-shirt.
The most difficult verification
Zhou Weihong, deputy general manager at Spring Tour, noted that some foreign tourists have downloaded and bound their overseas credit cards to WeChat Pay and Alipay but still cannot complete payments. Others manage to reach the final step of the payment process after multiple steps but get stuck when a verification code needs to be sent to their phone number.
"Some foreign tourists use SIM cards primarily for internet access in China after arriving, and these cards do not come with a corresponding phone number, making it impossible to receive verification text messages and thus limiting their ability to use mobile payments."
Given that overseas tourists are more accustomed to credit card payments and cash, Zhou said, "Since we welcome everyone to China, we should accommodate these foreign tourists in the payment process and provide them with the necessary supporting services."
(With input from Wen Wei Po, The Beijing News; English Editor: Darius)
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