E-payments

Non-cash payment methods mean payment methods that result in an addition to one of the beneficiary’s bank accounts, such as deposit, transfer, and debit orders, credit and debit cards, payment using a mobile phone, or other methods approved by the Governor of the Central Bank.

The Ministry of Finance shall determine the mechanisms and means of non-cash payment and collection from among the means referred to in the first paragraph of this article or approved by the Governor of the Central Bank, in the state authorities and agencies, units of the state administrative apparatus, local administration units, public service and economic bodies, agencies that have special budgets, special funds and accounts, and relevant units. The private sector and other government agencies whose accounts are included in the unified treasury account

Arab Republic of Egypt is making a great effort in the economic field and trying to achieve the global progress in the technology field, the Law No. 18 of 2019 was issued to regulate the usage of non-cash payment methods, in an attempt to advance the economy and develop payment methods in the Arab Republic of Egypt to facilitate dealing and reduce cash dealing.

The Law obliges all the Authorities, bodies, legal persons and Companies in which the state owns all or the majority of its capital to pay the financial dues set for its members, employees, experts, heads of members of boards of directors and committees, and social insurance subscription by means of non-monetary payment with the exception of the travel allowances abroad.

Private legal persons and establishments of various types are also obligated to pay the dues of their employees, experts, chairmen and members of boards of directors and committees, and social insurance subscription by means of non-cash payment, whenever the number of their employees or the total value of their monthly wages exceeds the limits set forth in Article (3) of the executive regulations no. 1776 of 2020.

What are the different methods of electronic payment

E-payments means that we can pay through mobile phones, credit cards, debit cards, or wire transfers from one bank account to another through mobile phones or applications

Obligatory matters for electronic payment

The entities and companies under Financial Regulatory Authority (FRA) supervision shall settle their financial obligations – by using Cashless Payment Methods – when they exceed the limits specified in the Law’s Executive Regulations.

First Obligatory:

1. Upon granting cash financing provided by Mortgage finance companies, financial leasing or factoring companies, microfinance companies or any non-banking financial institution.
2. Upon distributing the profits resulting from the contribution to companies’ capital or investment funds.
3. Payments to syndicates’ members and participants in private insurance funds and insurance compensation.
4. Upon granting subsidies and donations by NGOs or other private legal persons and establishments of various kinds.
5. Paying fees in cases of purchase or rent or exploitation or use of land or real estate.
6. Paying the dues of suppliers, contractors, and service providers, and other contractual parties, it is used for paying the dues of employees, experts, heads, and members of boards of directors, committees and social insurance contributions. Also, whenever the number of employees or the total value of their monthly wages exceed the limits specified in the Executive Regulations of the said law.

Second Obligatory:

1. Collecting cash financing premiums, insurance premiums, syndicates’ subscriptions, and private insurance fund subscriptions using Cashless Payment Methods.
2. Subsidies and donations granted by NGOs and institutions or granted by other private legal persons and establishments of various kinds.
3. Fees in cases of sale, rent, exploitation, or use of land or real estate or express transport vehicles.
4. Fines and other receivables to companies and entities operating in non-banking financial activities.

What are the fines that will apply when violating this law?

A fine of minimum 2% of the value of the amount paid in cash and not exceeding 10% of its value and a maximum of One Million Egyptian Pounds is imposed on anyone who violates the provisions of Articles (2, 3 and 5) from Law No. 18 of 2019 related to electronic payment, and the same penalty is imposed on anyone who divides the payments with the intent to defraud to avoid applying the prescribed limits Based on this law.

Also, shall be punished with a fine of no less than One Hundred Thousand Egyptian Pounds and not exceeding Three Hundred Thousand Egyptian Pounds for any of the addressees, when he fails to provide means of E-Payment – to those dealing with at all collection points in exchange for service without additional cost and the fine will be doubled in the event of a return.