CZECH REPUBLIC

Source: IMF, International Financial Statistics, June 2021.

• The Czech central bank is the Česká Národní Banka (CNB – www.cnb.cz).

• Per-item based charges are applied on payments between resident and non-resident accounts.

• Credit transfers are used by companies to pay salaries and suppliers, and to make tax and treasury payments.
• High-value and urgent domestic credit transfers can be settled in real time via CERTIS.
• High-value and non-urgent EUR-denominated credit transfers (within the euro zone) can also be settled in real time via TARGET2 (accessed via parent-group branch networks).
• Low-value and non-urgent CZK-denominated credit transfers can be settled through CERTIS. Same-day settlement for low-priority items is not guaranteed.
• SEPA credit transfers can be settled via STEP2 (accessed via parent group-branch networks). Twenty-one banks in Czechia participate in the SEPA credit transfer scheme.
• Cross-border credit transfers in domestic and foreign currencies can be processed via SWIFT and settled through correspondent banking and bank branch networks.
• The Czech Post Office also offers a cross-border transfer service in foreign currencies.
• The CNB has launched a nationwide instant fund transfer system. There are currently 12 participants. The Instant Payments scheme allows individuals to transfer up to CZK 400,000 in real time, 24 hours a day, seven days a week.
• The European Payment Council’s SCT Inst scheme (a pan-European 24/7 instant payment scheme for SEPA credit transfers) enables the transfer of funds (the maximum threshold value is EUR 100,000) to another account in less than ten seconds. SCT Insts are not available in Czechia at present.
• EBA Clearing and Italy’s SIA Group have developed and implemented a pan-European platform for instant EUR payments called RT1. It is fully compliant with the SCT Insts scheme and is in line with the ISO 20022 global messaging standards for instant payments.
• TIPS is a pan-European service for the settlement of instant payments in central bank money. The service enables payment service providers and ACHs with access to TARGET2 to offer fund transfers 24/7, 365 days a year. TIPS is aligned with SCT Insts. It is primarily focused on EUR payments but is technically capable of settling payments denominated in other currencies.

• Direct debits are used for regular payments, such as utility bills.
• Direct debits can be initiated electronically or via a paper format.
• Same-day settlement is available for intrabank debits. Interbank debits can take five working days.
• Direct debits are settled via CERTIS.
• SEPA CORE and B2B SEPA direct debit schemes are available in Czech Republic and can be settled on a same-day basis via STEP2.
• The SIPO (Centralized Collection of Household Payments) service enables a single direct debit payment for all regular household bills. SIPO is managed by the Czech Post Office.

• The cheque is not a common cashless payment instrument. Used for low-value transactions, its use is in rapid decline.
• Cheques are truncated into electronic items before being settled via CERTIS.
• Cheques can also be processed via a bank's internal network if the cheque is issued and deposited at the same bank or can be presented to the drawee bank on a collection basis before being settled via CERTIS.

• Card payments, particularly via debit card, are increasingly popular, especially for retail transactions.
• Debit card transactions increased 20.3% and 17.7% in volume and value terms in 2019, to 1,151.1 million transactions, with a value of CZK 716.9 billion. In contrast there were 121 credit card transactions, with a value of CZK 90.7 billion, a 7.6% increase in volume terms but a 10.6% fall in value terms on 2018 figures.
• There were 11 million debit cards and 2.1 million credit cards in circulation at the end of September 2020. There are over 12.8 million cards with contactless payment functionality in circulation.
• Contactless card payments are growing in popularity: contactless payment card or mobile payments were used 1.05 billion times in 2020, compared to  919 million times in 2019.
• Visa and MasterCard-branded debit cards are the most widely issued.
• Visa and MasterCard-branded credit cards are the most popular. American Express and Diners Club credit cards are also available.
• All cards issued are SEPA-compliant with EMV chips.

• There were 5,529ATMs in Czechia at the end of September 2020.
• There were 266,138POS terminals in Czechia at the end of September 2020.
• Czechia has five ATM and POS networks.
• All ATMs and POS terminals are EMV-compliant.

• Single-purpose electronic wallet schemes are available in Czech Republic for use on transport networks and for mobile phone payments.
• Mobile payment schemes, including Google Pay and MasterPass, are available.

• BNP Paribas offers targeted support for the trade finance needs of large corporations headquartered in, or operating in Czech Republic. The bank's trade centre has been operational since 2008 and includes a trade manager and 2 trade officers, supported by a centralised trade back office in Bulgaria. BNP Paribas' trade finance solutions and services in Czech Republic are differentiated by the bank's relationship management-based approach, the strength of its expertise, and ongoing commitment to delivering best-in-class services.

• The EU has trade agreements in place with over 30 countries.
• The EU is currently in free trade negotiations with a number of countries, including the Association of Southeast Asian Nations (ASEAN), Australia, Indonesia, Mercosur (the Southern Common Market), Uruguay, and the USA. The EU-UK Trade and Co-operation Agreement came into force on 1 May 2021.

Source: IMF, International Financial Statistics, June 2021.