Zagreb hotel’s no cash policy under fire: Is it legal?

A controversial cashless policy at a Zagreb hotel has sparked debate, with customers and the Croatian National Bank questioning its legality.

A local resident, who frequently visited the establishment for coffee, has upset after learning that cash was no longer accepted.

According to daily Jutarnji list, for the past month, it has been impossible to pay with cash at the hotel, as they now only accept card payments.

“Just a few days ago, I was there with a friend for a drink and we were unpleasantly surprised by the situation. We should have the right to pay in cash, but when we insisted, the waiter became unpleasant, raised his voice, and repeated that we had to pay by card.

I don’t know what would have happened if I had refused to pay by card and insisted on my right to pay with cash,” the Zagreb resident explained.

He added that although he doesn’t particularly mind paying by card, he considers the hotel’s decision discriminatory and potentially unlawful.

A staff member at the hotel confirmed that cash payments had indeed been discontinued but was unable to provide an explanation for the decision.

A notice on the door reinforces this policy, stating that only card payments are accepted. A waiter at the bar explained that guests are always reminded of this card-only policy.

The Croatian National Bank (HNB) has clarified that there are specific circumstances where restrictions on certain payment methods may be permitted.

However, the introduction of a blanket ban on cash payments in hospitality venues, without exceptional circumstances to justify such a measure, is not allowed.

“For example, the Anti-Money Laundering and Counter-Terrorism Financing Act may allow certain restrictions. However, with regard to general national provisions governing payment methods, we can inform you that the national regulations of the Republic of Croatia do not include a general provision addressing this issue.

Neither the Law on the Introduction of the Euro as the Official Currency in Croatia nor the Law on the Croatian National Bank specify methods of payment or mandate that recipients can demand payment exclusively via a specific method,” the HNB concluded, Jutarnji list reported.