Across Baku’s cafés, salons, and small shops, customers are increasingly hearing the same phrase: “We only accept cash or card transfers.”
In an age of digital payments and tap-to-pay convenience, such restrictions seem outdated – yet for many Azerbaijani consumers, they’ve become a daily frustration.
Why Businesses Are Saying No to POS
Entrepreneurs say they’re trying to cut costs. Each POS transaction comes with a bank commission of 1–3%, which small businesses claim eats into already tight margins.
By asking for cash or direct card-to-card transfers, they receive funds instantly – without bank fees or tax reporting.
But this “optimization” comes at a cost to customers – and, legally, it’s a violation.
Customers Frustrated by ‘Cash Only’ Rule
“I rarely carry cash,” said Jamila Abbaszade, a Baku resident interviewed by Media.az.
“When a seller refuses to take a card and asks for a transfer, I have to find an ATM. It feels unprofessional and disrespectful.”
Another customer, Kenyul Gasymly, shared a similar story about beauty salons:
“They asked me to transfer money to the administrator’s personal card. It looked strange – and far from transparent.”
Legal Expert: It’s Against the Law
According to Shamil Pashayev, director of the Norma Legal Center, many businesses are legally required to have POS terminals. Refusing card payments directly breaches Azerbaijani law.
“The fine for the first offense is 1,000 manats, for a repeated violation – up to 3,000, and for the third – 6,000 manats. These amounts can be seized directly from the business,” he told Media.az.
Pashayev emphasized that requiring customers to pay cash or transfer to a personal card violates consumer rights and may signal tax evasion.
“Without a fiscal receipt, buyers cannot return goods or claim their VAT refund. If this happens, they can file a complaint with the Tax Service or the Consumer Protection Agency,” he added.
Tax Service: 1,143 Violations Detected
In response to Media.az, the State Tax Service confirmed that “card-to-card” payments remain widespread despite awareness campaigns.
Such transfers bypass fiscal receipts, which not only deprive consumers of their 17.5% VAT cashback but also weaken tax transparency.
Between January and August 2025, authorities detected 1,143 violations, with monitoring operations ongoing.
Consumer Union: Lack of Oversight Hurts Fair Competition
Eyyub Guseynov, head of the Azerbaijan Free Consumers Union, said his organization receives frequent complaints about businesses ignoring POS rules – even when terminals are visibly present.
“This practice violates consumer rights and undermines honest competition,” he said.
“Transparent businesses suffer, while those who evade taxes gain an unfair advantage.”
Guseynov called for tougher enforcement and greater public awareness.
“Customers must demand receipts and know their rights. Otherwise, these illegal schemes will continue unchecked.”
