Estonia's Act on the Introduction of Euro and Euro Cash Settlements stipulates that all businesses and institutions are required to accept up to 50 euro coins per transaction and euro banknotes without limit, unless otherwise agreed upon by the parties. Compliance with this requirement is overseen by the Consumer Protection and Technical Regulatory Authority (TTJA).

Within the European Union, a European Commission recommendation states that euro banknotes and coins should generally be accepted as a means of payment in retail transactions.

"Refusing to accept them should only be permissible in justified cases, based on the principle of good faith — for example, if a retailer does not have change," said Hanna Jürgenson, a communications specialist at the Bank of Estonia.

However, even not all government agencies accept cash. One such example is the Tax and Customs Board (MTA).

Payments of state taxes and other financial obligations established by law can be made to the MTA's settlement account. The same applies to monetary penalties, fines, enforcement fees and procedural costs imposed by courts or the Prosecutor's Office.

"It's convenient to pay taxes and government claims through the Tax and Customs Board's e-service environment, e-MTA. Payments can be made via bank link or credit card. Bank link payments are available for clients of SEB, Swedbank, Luminor Bank, LHV and Coop Pank," said Andri Küüts, media relations specialist at the Tax and Customs Board.

He added that government claims can also be paid by card using payment terminals at MTA service centers.

Cash payments to the Tax and Customs Board are only accepted at border customs points with third countries, and even there, the maximum deposit amount in cash is limited to €10,000.

The Transport Administration also does not accept cash for most payments. The only exception is state fees of up to €10. In practice, this means that most state fees cannot be paid in cash, as there are only a few services at the Transport Administration with fees that fall within the ten-euro range.

Joel Jesse, director of the Transport Administration's traffic services department, said that for larger payments, clients are asked to use a bank card or transfer. This policy is based on provisions in the State Fees Act, the internal accounting rules of the Ministry of Climate and the Transport Administration's cash handling procedures.

Bank of Estonia: Cash payments can be limited with good reason

According to the Bank of Estonia, imposing additional requirements on cash payments is permitted primarily to prevent money laundering, tax evasion or other forms of abuse. In justified cases, this may include rules that directly restrict the use of cash.

"Council Regulation (EC) No 974/98 on the introduction of the euro allows a member state to impose restrictions on payments made with euro banknotes and coins, provided that these are established on general grounds, do not undermine the status of euro cash as legal tender and that other lawful means of settling financial obligations are available," explained Hanna Jürgenson.

She added that Estonia has introduced several restrictions on cash transactions based on this provision. For example, recipients of state fees are only required to accept up to ten euros in cash, as practiced by the Transport Administration.

There are also sectors where cash payments are entirely prohibited, such as the import, wholesale and export of alcohol. In these cases, the Alcohol Act requires that transactions be conducted without the use of cash.

The law does not require banks to offer cash services either. Jürgenson noted that if a bank decides not to provide certain services — such as depositing coins and notes into an account or exchanging banknotes — this is permitted and customers are free to choose a bank based on the services it offers.

"However, a customer must be able to pay for a banking service in cash. In other words, while banks are not obligated to offer cash services, if a bank chooses to provide a specific service, the customer has the right to pay for it in cash," Jürgenson emphasized.

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