fidobsa

Someone mentioned in another thread about the rounding up or down amounts of less than 5 forints. It does not bother me that I will pay 100 ft for an item marked at 99 ft but I hate it if an item is marked at 102 ft and I have to give them 100 ft. I know that's how the system works but it always feels like I am trying to short change the shop! I suppose it is better than in Croatia where they still have the low denomination coins equivalent to the old Hungarian fillér (100 fillér = 1 ft). You end up with a heap of worthless coins and there is not even a Tesco shop where you can feed them into a self-service till!

wolfi

Actually I'm sure that this will happen some day with the € too - already in Finnland 1 and 2 Cent coins are no longer accepted - and they are very rare so fetch a good price ...
https://en.wikipedia.org/wiki/Finnish_euro_coins
And this rounding is also being used in many other countries:
https://en.wikipedia.org/wiki/Cash_rounding

Pulaski

Cash is an anachronism, I use very little. Surely we can't be far from everyone using credit/debit/e-wallet cards for everything.

fidobsa

Not in Hungary, most small shops don't accept cards.

Pulaski

It will change, probably faster than you expect.

wolfi

Yes, now that everybody has to use a till that is actually a terminal online to the tax office , they may as well put cards into that terminal!

Peter_in_Hungary

With estimated 25% of the GDP here in the black economy and an undefined amount in the grey economy (wages partly 'official' and partly off the books to avoid payroll tax) all of which requires cash, along with the high number of pensioners who still receive their pension via the postie in cash and who have never had a bank account. And don't forget those who can't get a bank account I can not see the end of cash.

Imagine having the home help or gardener come in for a couple of hours work at the end of which they pull out their portable card reader and ask you to insert your card so that you can transfer the pay..............It ain't going to happen for a looooong time!!!

The government had a big push to get salaries paid into banks directly. Due to complaints the banks were forced to give everyone 150,000huf once a month withdrawal facility free of charge because people objected to being charged to get their wages

Peter_in_Hungary

The terminals are not required everywhere e.g. most markets, small holders selling direct and others.

And yes a lot of shops, small and surprising large enterprises, don't accept cards as they don't want the additional expense of the terminal and the charges made by the card companies.

fidobsa

Yes, if you can avoid having a bank account in Hungary you can save yourself some money. I have an OTP account which I never use as I have no means of transferring money into it from my UK accounts. I did use it initially after arranging a transfer at my UK branch but then ran it down to about 100,000 ft and stopped using it. OTP take about 1000 ft off me every month and the only thing they do for that money is send me statements.

duztee

Have to agree with Peter's view completely, I have had several house projects completed, a couple of them near to the million forint mark and it was always cash or (try to) get someone else! and that included the building supplier!
I agree that perhaps with the exception of Budapest the rest of Hungary is a LONG way from cash free living.

wolfi

Of course you're right - there is too much "black economy" in Hungary but the government is trying to change that - whether they succeed will have to be seen.

There is a lot of pressure - the restaurants that we frequent all have their portable card readers, the guy in the village that sells that marvellous pumplin seed oil has a till and gives receipts and so on.

If you're a businessman and the government doesn't like you they send the tax people over regularly I've heard - and they always find some small or bigger problem and fine you ...
Did you read that story about the "Rent out Santa Claus" who had problems with the tax office NAV? As if he did that job every day of the year ...