Using a French Bank Account
The products and services available from banks in France...
Depending on the type of account chosen a cheque book, and payment and cash withdrawal card (commonly referred to as the carte bleue) will be issued.
Paying by Debit Card in France
Card
payments by carte bleue are accepted in most places in France. Payment is made
using the PIN code; signatures may be requested over a certain amount.
Contactless payments are common practice in Paris, although not all stores in
all towns are equipped to accept them yet. You can pay up to 30 euros using
this method. It is also possible to pay with your smartphone/watch if it is
equipped for contactless transactions. Note that the CB is a debit not a credit
card - you can choose to have your account debited immediately (débit
immédiat) for purchases or at the end of the month (débit differé)
Cash
machines, ATMs (distributeurs) are easy to find in most towns and villages and
are straightforward to use (being much the same as elsewhere in the world):
enter the card and follow the text instructions. Many machines allow for the
option to select English-language text
There may
be restrictions on the use of an account when travelling outside the
département where the account is held; speak to the branch to make
arrangements.
Currency and cash
Many banks
don’t hold cash, and you will need to get cash out from an ATM. The currency
used in France is the Euro. The notes are issued in €500, €200, €100, €50, €20,
€10, €5, and the coins in €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c denominations.
It should be noted that many shops do not like to accept 500 euro notes, and
may refuse to take them.
There are
ceilings on cash payments in some circumstances. For exact information visit
the Service
Public website.
Cheques
The use of
cheques in France is becoming increasingly rare, and many shops now refuse to
take a cheque. If you do pay by cheque, it is not unlikely that you will be
asked to provide photographic ID (for example passport, residence permit or
driving licence).
Cheques
are accepted as a cash payment. French law makes a cheque equivalent to cash;
it is therefore illegal to write a cheque if there are not sufficient funds in
the account to cover the payment. If a cheque is written that the bank cannot
pay because of lack of funds, the bank is obliged to report it to France's
national banking authority, the Banque de France, which can impose an interdit
bancaire, forbidding the account holder from using cheques for five years.
- A cheque can only
be cancelled if it is lost, stolen or if there is a suspicion of fraud
- It is illegal to
write a post-dated or open-dated cheque
- A cheque is valid
in France for one year and eight days (12 months, 8 days).
When
receiving payment by cheque, always write the account number, bank code and
sign the back of a cheque before depositing it.
As a
cheque book nears completion, the bank will send another one if a form
requesting automatic renewal has been filled in. Postal fees are charged for
registered delivery. Renewal can also be made by filling in the form provided
in a chequebook, or by simply phoning the bank or sending an email. Collection
can be made at the branch.
Paying by personal
cheque does not incur additional charges in France; however, a fee is charged
to use a bankers draft (Chèque de Banque).
Completing a French cheque
French
cheques should be filled out in French.
When
writing or reading French numbers, it is important to know the placement of
points and commas.
- A point marks the
thousands, while a comma separates the cents: one thousand Euro is written
€1.000,00 (mille euros)
- A comma marks the
fractions in a percentage: fifty-two point six percent is written 52,6%
(cinquante deux virgule six pourcent)
Secured cheque/Cashiers cheque/Banker's draft
When
receiving or paying large amounts of money in a private sale (for example,
buying a used car through a classified advertisement) it is recommended to use
a Chèque de Banque, as payment is guaranteed by the issuing bank. This provides
both buyer and seller guarantee of proper payment.
The payee
must request in writing that the bank prepare the cheque. Provide the account
number to be debited, the payee's name and the amount. The request should be
made a day or two before it is required; the bank charges for the cheque. It is
valid for one year and eight days from issue.
A bankers
cheque is secure and watermarked to avoid counterfeiting.
RIB: Relevé d'Identité Bancaire
On opening
an account, the bank provides several copies of RIB (Relevé d'Identité
Bancaire). This is a form which establishes the bank references and account
details and identity. It contains the numéro de compte (account number) the
code de l'établissement (bank code) and the code du guichet(sort code).
RIBs are
requested when establishing regular contract payments by automatic debit on an
account (prélèvement automatique) for example, for the payment of utilities.
RIBs are also used when setting up automatic payments into an account, for
example Social Security, Family Allowance benefits or salaries.
A RIB is
also needed when taking out a contract where monthly payments by TIP (see
below) are required.
There are
usually about three printed RIBs in the back of a cheque book. Printouts of
RIBs can also be made from a cash machine, or via the Internet banking
facility.
TIP: Titre Interbancaire de Paiement
A TIP
(Titre Interbancaire de Paiement) is the authorised permission to debit an
account of the sum asked for by the provider (for example EDF, France Telecom
or the Tax Department).
The TIP
replaces the use of a cheque, and comes attached to the bottom of the invoice (facture).
The first time an invoice is received, sign it and enclose a RIB in the
envelope provided (there will be printed instructions). The next invoice amount
will automatically have all the bank information printed on the TIP and needs
only to be signed, dated and posted off.