Visa Cards in Spain

Under the new financial restrictions, countries such as Spain have decided to only allow a maximum of 2,500€ in cash in any transaction. This has created a need for us all to now trust banks and the banking system, which we are all going to do, obviously! I have clients paying me money, which I then need to use to pay my suppliers. The usual business transaction, except now, I cant use cash very easily. I therefore have looked at Visa cards as a method of payment for my goods. The limitations of use, applied by the banks (we trust) mean these are hopeless for my needs. Transaction amounts are up to 10,000€. The supplier won't take cheques, and the quick turnround we have up to now been able to offer our clients, means we cant wait the three days for the bank (who we trust implicitly) to transfer (earn interest on) our money. Has anyone got any better ideas?

Do the same as the Spaniards. Carry onas normal.

 "we cant wait the three days for the bank "

Sorry don't understand this. We can do same day transfers with our bank in Spain (BMN). We can do a transfer from our account in UK to the our Spanish account using the cheapest/slowest method. Call by 9.30 am and the money is in the account by 6.00pm. Are your clients paying you by cheque?.

Juan

I agree guslopez. Its the way to go, if I can get away with it. However, it would be nice to be able to do it legally. However as usual, the government has not thought this through.

juansheetisplenty, yes, you are right, it does only take a day within Spain. Its the supplier who places the three day wait limit on us, not the banks. It's rare to get a cheque nowdays and if we do, we insist its Al Portador. Most of our clients live overseas so cheques are not an option.

What we need is the government to think before taking actions like this. What they could have done is legally ensure the banks make visa cards available. I don't mind top up cards, but a card I can use up to 1000€ a month is hopeless to me, which is what is on offer at the moment.

So yet again, the EU  becomes even less competitive. The Chinese must be rubbing their hands with glee!

 Hi, Johnx

When an "al portador" cheque is cashed at a bank for an amount higher than 2,500 Euros (perhaps it is 3.000 I can't really check it out now), the Bank must fully identify the person that it is cashing the check.  Therefore, up to that amount, cheques are equivalent to cash but any higher and the parties are fully identified.

The purpose of the cash limitations in business transactions is to reduce the black hidden economy.  

Thanks Lobin.

Does not affect me but interesting to know.