New rules for currency exchange come into effect in the Czech Republic
From now on, a client has the right to cancel a transaction within three hours of its execution. All that is needed is to present the receipt. This means that if a client considers the exchange rate unfavorable and changes their mind, the exchange office employee will be obliged to refund the money in full without any excuses. Moreover, this can be done at any branch of a particular company or its main office.
The innovation applies only to amounts up to 1000 euros (or equivalent in other currencies). The Ministry of Finance introduced this limit specifically to avoid possible abuses by speculators. If the transaction is conducted in the evening, the three-hour rule is carried over to the next day (the determining factors are the exchange office's operating hours and the transaction time on the receipt).
Entrepreneurs are required to indicate information about the "right to reverse exchange" on the price list and the issued receipt, in at least two languages – Czech and English. Refusal to refund money carries a fine of up to 5 million crowns. In such a case, the client must contact the Central Bank and file a complaint.
Other important innovations of the updated law:
– Exchange offices may now have only one price list. Until today, entrepreneurs were allowed to use several price lists that applied depending on the amount being exchanged (the notorious VIP rates). This was often used by dishonest exchange offices – they would display one price list in the most visible place but conduct the transaction at a second one;
– Exchange offices are now prohibited from charging any commission for cash currency exchange. Some entrepreneurs would "catch" clients by offering a good rate but then, after the transaction, inform them of a commission for the operation itself. The new rules prohibit such practice. However, commissions for exchanging bank checks, large quantities of coins, and other non-standard operations may still be charged.
The law is based on a report and recommendations from the Czech National Bank (detailed rules are set out on the regulator's official website). Ordinary residents have received it positively, calling it the first serious step in years towards solving the problem of dishonest exchange office workers. This issue is particularly acute in the center of Prague, where dozens of tourists fall victim to "legal deception" daily. Exchange office employees use various legal tricks to deliberately mislead clients, and after a transaction at an unfavorable rate, refuse to cancel the transaction and refund the money.
As Vinegret.cz notes, the next step should be an information campaign aimed at familiarizing tourists with the innovation in the currency exchange sector.