Money exchanges

Dispute resolution in the area of money exchanges

The relevant statute regarding the money exchanges is the Act No. 277/2013 Coll., on money exchanges, as amended.

The exchange transaction is a transaction consisting of the exchange of banknotes, coins or cheques denominated in certain currency for banknotes, coins or cheques denominated in another currency, or scriptural money or electronic money denominated in certain currency for banknotes, coins or cheques denominated in another currency, provided that a payer has given a payment order to transfer the scriptural money or the electronic money through a payee providing currency exchange.

The exchange rates applied by exchange offices are not subject to government regulation in the Czech Republic. The exchange rates are subject of agreement of the parties to the contract (liberty of contract). It is due diligence and caution of the reasonably well-informed, reasonably observant and circumspect average consumer to ascertain and evaluate the conditions of the offered money exchange.

The Money Exchange Act focuses on the information duties of the money exchange providers making sure that a customer has all the information needed to conclude a contract. The money exchange provider shall publish the exchange rates list in the business place. The exchange rates list shall include, inter alia, a designation showing that an exchange rates list is concerned, names or other designations of the currencies between which the money exchange shall take place and information on the money exchange rates to be used for calculation of the money exchange which are the least advantageous for the person interested in the money exchange. Such information shall be provided in advance in textual form, in an exact and comprehensible manner, at least in Czech and English.

The right to withdraw from the the money exchange

According to the Money Exchange Act a customer is entitled to withdraw from the money exchange. The exchange rates list shall include information on the right to withdraw from the money exchange and under its  conditions. A customer is entitled to withdraw from the money exchange up to 1,000 euros (or to the amount of 1,000 euros when higher) within 3 hours in the business place where the money exchange has been provided or under specific conditions within 6 months in whichever business place of the money exchange provider (if there was an obstacle on the side of the money exchange provider or if there was no information on the right to withdraw from the money exchange on the exchange rates list).

Disputes in competence of the Financial Arbitrator

The Financial Arbitrator is authorized to decide disputes arising in connection with money exchange regarding:

• withdrawal from the money exchange,
• the amount of the fee for the execution of the money exchange,
• validity of the money exchange,
• exchange rate.

Filing a complaint

It is recommended to use a Complaint Filing Tutorial of a complaint form for filing a complaint.