In Vietnam, can businesses refuse cash payments from customers?

A reader told Tuoi Tre (Youth) online newspaper that they felt inconvenienced when buying drinks at a Starbucks Vietnam store after being told that cash payments were not accepted.

The reader said cash issued by the State Bank of Vietnam (SBV) is a legal means of payment in the country, and questioned whether Starbucks' refusal to accept cash should be considered from a legal perspective.

The reader also asked whether businesses have the right to refuse cash payments and require customers to use other payment methods.

Cashless payment is a choice of payment method

Starbucks Vietnam began introducing its cashless payment policy at the end of 2023, initially at several stores before expanding it to more locations.

Customers can make payments via bank transfers, cards, e-wallets, Apple Pay, Google Wallet, and other cashless methods.

Responding to the complaint, a Starbucks Vietnam representative said the company chose to adopt cashless payments at its stores in order to ensure 100-percent transparency in all transactions and cash flows nationwide.

This also helps make the company's financial obligations to the state budget more transparent, the representative said.

Cashless payments also help reduce security risks for employees that may arise from handling and storing cash and transporting large amounts of cash to banks for deposit.

Another reason for the policy is to support Vietnam's efforts to promote cashless payment habits, the company said.

Starbucks Vietnam cited initiatives such as 'Ting Ting Day' launched by the SBV and local programs promoting 'cashless streets.'

Regarding the complaint that Starbucks Vietnam is violating regulations by refusing cash payments, the company cited Article 23.3 of the Law on the SBV, which prohibits the "refusal to accept or circulate currency issued by the SBV that meets circulation standards."

Starbucks Vietnam said it does not refuse banknotes that meet circulation standards and are issued by the SBV, but only chooses a payment method that is appropriate for its business operations.

"The above provision regulates the currency used for payment, not the payment method. In our case, we do not refuse banknotes that meet circulation standards and are issued by the SBV. We only choose a payment method that is appropriate for our business operations," the company representative said.

Starbucks will assist customers unable to make cashless payments

Starbucks Vietnam said customers can use various payment methods for transactions, including cash, bank transfers, e-wallets, and bank guarantees.

Accordingly, Starbucks Vietnam said its choice of bank transfers and e-wallets is similar to cases in which parties enter into a transaction, sign a contract and agree on bank transfers as the payment method, with customers informed of the arrangement in advance.

"Regardless of the method chosen, the currency used for payment remains the Vietnamese dong, in accordance with the law," the representative said.

Starbucks Vietnam said it publicly informs customers of its payment policy through notices at stores and payment counters, as well as through staff communication before transactions are confirmed.

However, some people have pointed out that refusing cash payments could cause inconvenience for certain groups, including older customers who have limited access to technology.

Customers could also be unable to make cashless payments if there are network problems or their banking apps are temporarily unavailable for maintenance.

Starbucks Vietnam said that it understood these situations and that store employees would provide assistance to customers who are unable to complete cashless transactions.