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Are cheques finally falling out of favour in France?

The Covid pandemic has hastened the decline of a French institution - the cheque book - according to data from the Banque de France, but it seems the French are not ready to let go just yet.

Are cheques finally falling out of favour in France?
Many businesses still prefer payment by cheque. Photo: BERTRAND GUAY / AFP.

While cheques are already a thing of the past in many countries, if you live in France you might have had to give in and ask your bank for a cheque book. From rural shops to tradesmen, landlords to universities, there are still many people and organisations in France who prefer to be paid by cheque.

However, their numbers are dwindling year on year. In 2020, only 5 percent of non-cash payments were made by cheque (1.2 billion), according to the latest report from the Banque de France.

That is a dramatic fall off from 2000, when cheques represented 34 percent of non-cash transacations. The number of cheque payments was three times larger at the start of the century.

Value of transactions (not including bank transfers) since 2016, in billions of euros.

“It is expected that the Covid-19 health crisis will put people off this payment method even more permanently,” the report stated. In 2020, cheque transactions fell by 26 percent, and lost 25 percent of their value.

However, French people are not ready to say goodbye to their cheque books just yet. In total €614 billion was exchanged this way in 2020, making it the third most popular non-cash payment method, behind bank transfers and direct debits, but ahead of card payments.

READ ALSO Everything you need to know about setting up a bank account in France

“Even if it’s becoming more and more rare, the cheque is still associated with larger transactions, because the average amount per cheque was €522 in 2020,” the report added.

More than eight out of ten French people own a chequebook, making France a European anomaly. According to a 2020 report from the European Central Bank, only 27 percent of people had access to cheques across the eurozone as a whole.

As well as the health crisis, the relative decline in the popularity of cheques can partly be explained by security concerns. In 2020, cheques represented 42 percent of all fraud cases, the most of any non-cash payment method.

In 2020, contactless payment became the most popular method at the point of sale in France, following the increase in the maximum payment from €30 to €50.

Member comments

  1. These sort of articles have been about for years. So explain how one can pay a tradesman for an invoice of say €2500 without a using a cheque. Cash is out because the tradesman bank would want to know where it came from. It’s even worse in the motor trade as most garages will nor accept cash over €1000. I remember the good old days when one could buy a car in cash or pay with a credit card.

    1. I haven’t used a cheque book in about 20 years. However, I recently needed to hire a car. Our local Carrefour had one rental car and required either E1000 in cash OR a cheque. Would not, for love nor money, secure it with my credit card like regular car hire places. Duly paid the E1000 in cash, feeling quite weird with E1000 a) in my hand and then b) @ the Carrefour with no obvious security except a hand written note from the cashier. Two weeks later, having received my cheque book, went back to get the E1000 back and replace it with a cheque. Totally nuts system because right by the checkout was a big sign saying no cheques accepted over E50 because so many bounce.

      I went back to deliver the car when I’d finished. Cheque handed back and ripped up.

  2. A good proportion of doctors/specialist seem not to have credit card machines. When you go there, it’s going to be a cheque, as how else are you going to conjure up on the spur €85 euros of whatever for the specialist.

    Until the medical procession universally move to card transactions, cheques remain.

  3. When I first started working (very very long time ago) one of the things that was explained to me was the efficiency of various forms of payment (cash, card, transfer, cheque). At that time the cheque was the least efficient way to pay, passing through, on average, 17 pairs of hands from deposit to clearance. I assume by now some efficiency has crept in but that was my reason then for not taking a chequebook and I have stuck to that. Only here in France did I have to request one to pay ONE supplier back in 2017. Never used it since.

    Now, whenever I am asked to pay for a product or service by cheque I request the companies RIB details – so far everyone I have interacted with has been happy to provide this and take payment via bank transfer.

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PROPERTY

Explained: France’s new property renovation grant

Ma Prime Logement Décent, which came into effect on January 1st, offers financial assistance to property owners for major home improvements.

Explained: France’s new property renovation grant

The French government has several financial assistance schemes that are open to property owners to help finance renovation projects, especially those aimed at making homes more energy efficient.

GUIDE: French property grants you might be eligible for

Now a new one has been launched, aimed at property that is in a dilapidated and run-down state. The idea is both the ease the housing shortage that is a problem in several French cities and ensure that people are living in decent conditions. 

Launched on January 1, 2024, Ma Prime Logement Décent (My Decent Housing Bonus) has enabled property owners to obtain financial assistance for renovation work on run-down housing. 

Homeowners on a modest income can apply for the Ma Prime Logement Décent financial aid, which is – in certain cases – up to 80 percent of the total spent, up to a maximum of €70,000.

The scheme is open to people who own their own home and people who own a property that they rent out, but is not available to second home owners. You do not need to be a French national to apply, but you must be resident in France, have a French tax number and complete the annual French income tax declaration.

The aid can only be used for work to remedy a proven health or safety risk at a property, such as:

  • unsanitary conditions;
  • a risk of lead exposure;
  • significant deterioration to a property’s fabric.

Work may include :

  • renovating an electrical or gas network;
  • replacing a roof;
  • reinforcing the foundations.

Who’s eligible?

Owner-occupiers on ‘modest’ or ‘very modest’ incomes whose main residence requires renovation can apply for the Ma Prime Logement Décent aid, if:

  • the property was built more than 15 years ago;
  • the work is carried out by qualified professionals (except very particular cases);
  • your home has been assessed by a qualified assessor.

After work has been completed, it must achieve a minimum energy efficiency rating of E.

READ ALSO What do energy ratings mean for French property owners?

Owners renting out their property can apply for this aid in the following circumstances.

  • The unfurnished property must be rented to a low-income tenant, who cannot be a family member, or a member of the landlord’s household for tax purposes;
  • The property has a capped rent – ceilings are defined annually by commune or arrondissement;
  • It has at least a level D energy efficiency rating after the work has been carried out.

READ ALSO GUIDE: French property grants you might be eligible for

How much is the help worth?

When you use Ma Prime Logement Décent as an owner-occupier, you’ll be reimbursed for :

  • 80 percent of the cost of the work if you’re part of a ‘very low income’ household (rising to 90 percent if the work also means that your home is no longer a so-called heat sieve);
  • 60 percent of the cost of the work if you are part of a ‘low-income’ household ( rising to 70 percent if the work also prevents the home from becoming a so-called heat sieve).

In both cases, the total cost of the work must not exceed €70,000.

Owners renting out their property can benefit from 35 percent of the cost of your renovation work.

An online simulator can help property owners check whether the work qualifies for the Ma Prime Logement Décent scheme.

You use terms like ‘very low income’ and ‘low income’. What does that mean?

Your revenus fiscaux de référence (RFR) are important. You’ll see the figure on your annual tax assessment – it’s basically an amount calculated by the tax administration from the total income of a tax household intended to reflect the financial resources of that household.

It helps decide what social assistance you may be entitled to.

READ ALSO MaPrimeRenov: How France’s property renovation grants will change in 2024

In the greater Paris Île-de-France region, a single person living on their own is considered to be ‘very low income’ if their RFR is €23,541 or less (€17,009 for the rest of the country), and low income if it’s €28,657 or less (€21,805 outside Île-de-France).

The scale rises to €55,427 for a very low income household of five in Île-de-France (€40,002 elsewhere); and €67,473 for a low income household of five (€51,281 elsewhere).

Okay, I think I qualify. How do I apply?

The first thing to do is create an personal account on the Agence nationale de l’habitat website

You will be directed to an information point, where you can choose an adviser for your renovation project, who will help put together your application.

Once the application has been approved and the work completed, funds will be released to cover the cost.

READ ALSO French home renovations: What grants are available to the elderly and the disabled?

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