Foreigners in France is perhaps shocked to seek out their French checking account blocked after making a number of large purchases – reminiscent of reserving aircraft tickets – regardless of having sufficient cash of their account. Here’s why.
While it is regular on your financial institution to dam funds in the event that they exceed an agreed restrict or there isn’t a cash within the account, French banks even have a month-to-month restrict on card funds.
Most French banks have a plafond de carte bancaire, which caps the quantity you possibly can spend in your French financial institution card in a specified time frame, normally month-to-month.
This restrict is a cumulative one, and isn’t linked to how a lot cash is within the account – that means that your card might be blocked even when you have loads of cash to cowl the acquisition.
These most quantities are supposed to assist clients keep away from overspending, in addition to to behave as a safeguard within the occasion the cardboard is stolen.Â
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As for the plafonds, they exist in a few types, such because the month-to-month spending restrict per financial institution card, in addition to a most each day withdrawal at ATMs.Â
How do the month-to-month plafonds work?
The French system differs from the best way American and British banks work, which could impose each day spending caps for debit playing cards or general month-to-month credit score limits.
Credit playing cards are a lot much less widespread in France, so more often than not you may be utilizing a debit card, taking cash straight out of your checking account.
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Foreigners, as such, are sometimes shocked that French banks impose a month-to-month (rolling 30-day) spending restrict – often known as the plafond de carte bancaire – which isn’t based mostly on the sum of money you have got in your account.
The restrict may very well be as little as €1,000 and as excessive as a number of thousand euros. It depends upon the kind of card you maintain, so a ‘premium’ financial institution card would have the next month-to-month restrict.
You would possibly discover out in regards to the spending restrict whenever you go to make a purchase order and discover that your card is unexpectedly refused, regardless of having sufficient cash in your account.
This typically occurs when you have a number of large, consecutive purchases – both on-line or in-person – in a single month.
For occasion, when you have a plafond of €2,000 and you’ve got already spent €1,500 within the final 30 days, you solely have €500 left out there for brand spanking new funds (till the earlier bills roll out of the 30-day interval).
Even when you have been organised and moved cash into the account prematurely from financial savings, it will not make any distinction as a result of the restrict relies on what you spent on the cardboard, not how a lot cash is within the account.
You can discover out your card’s spending restrict by going to your on-line banking area – it must be listed below Mes Cartes – or asking in department.Â
If you employ on-line banking, your financial institution’s web site or app ought to present you the way a lot you have got left to spend within the present interval, in addition to giving an choice to request a briefly elevated spending ceiling.
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If you understand you have got an enormous cost developing, its clever to request a rise within the spending ceiling prematurely.
If you commonly hit the restrict you possibly can request a everlasting improve, however your financial institution might not grant it, particularly when you have a historical past of overdrafts or late funds.
What about ATM withdrawals?
Most French banks additionally set a most money withdrawal restrict (plafond de retrait), which relies on a seven-day rolling interval.Â
For instance, when you have a most withdrawal restrict of €500, and you’re taking out €450 on Monday, you then would solely be allowed to take out €50 over the following six days, earlier than the restrict resets.
The ATM restrict and the cardboard restrict are unbiased of one another – so in case your card funds are blocked you possibly can typically nonetheless get cash out of the ATM and pay in money.
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Some banks even have a restrict on the utmost amount of money you possibly can take out per transaction.
As with the restrict in your financial institution card, the withdrawal restrict may also be briefly modified in the event you contact your financial institution or make a request in your on-line area.
What about contactless cost?
Banks in France are additionally required to set an ordinary €50 plafond (restrict) on contactless (sans contact) card funds.
What occurs if I overdraw my account?
As issues stand, there isn’t a authorized proper to an overdraft in France. It is as much as the financial institution to determine to authorise overdrafts.
However, many French banks do enable overdrafts.
The first kind is a facilité de caisse, which is mainly an emergency allowance giving folks the flexibility to overdraw their accounts (as much as a restrict) for half or half of the month, so long as their steadiness turns into constructive once more for the rest of the month.Â
The second kind is the découvert bancaire, which is when your account is formally within the purple (past the bounds of the facilité de caisse).
French banks do cost overdraft charges, that are proportional to the quantity you overdrew (plus curiosity).
Banks may also cost a flat processing price (fee d’intervention), which is capped by the French authorities. This price is perhaps waived for a facilité de caisse.
These are restricted to €8 per transaction, with a most of €80 per thirty days. For individuals who have signed up for a particular financial institution scheme, the flat price limits are €4 per transaction, €20 per thirty days, and a most of €200 per yr.Â
The restrict can drop right down to €25 per thirty days for patrons recognized as financially susceptible by their financial institution.
However, beginning in November 2026, French banks will usher in stricter guidelines for overdraft allowances.
READ MORE: France tightens up financial institution guidelines for loans and overdrafts
