Since July 28, 2020, customers can use proximity payments (paiement de proximité) to pay bills for some recurring expenses at authorized tobacco retailers in France. In this article, we address the main features of proximity payments, including how they work and their advantages.

What’s in this article?

• What are proximity payments?
  
• What bills can you pay using proximity payments?
  
• Locating an authorized tobacco retailer
  
• How proximity payments work
  
• Advantages of proximity payments
  

What are proximity payments?

Proximity payment services are offered by the Public Finances Directorate General (Direction générale des Finances publiques, or DGFiP). These services allow customers to pay certain public debts at authorized tobacco retailers in France. Proximity payments aim to outsource the collection of tax receivables and facilitate the payment of everyday bills for people who are digitally excluded. This includes those who do not have bank accounts, cannot travel easily, or are not familiar with the Internet.

Debts can be paid in cash up to a limit of €300 or by bank card with no limit. Checks are not accepted for proximity payments. The French government estimates that approximately 2 million bills can be paid per year using proximity payment services.

Tobacco retailers offering proximity payments

To offer proximity payments, a tobacco retailer must be trained on the equipment, customer process, confidentiality, and prevention of money laundering and counterfeiting. Tobacco retailers must receive authorization from The French Gaming Company (Française des Jeux, or FDJ) and display the proximity payment logo on their storefront windows.

What bills can you pay using proximity payments?

The types of bills customers can pay at partner tobacco retailers include fines, public service bills (e.g., from the cafeteria, daycare, hospital, water and sanitation utilities), and tax bills less than €300 (e.g., public broadcasting, residence, and property taxes). Tax bills for amounts higher than €300 must be paid electronically.

Locating an authorized tobacco retailer

There are more than 15,000 authorized tobacco retailers in France. You can find participating local tobacco retailers on the French Tax Authority’s website.

How proximity payments work

Customers make proximity payments using quick-response (QR) codes. For an invoice to be payable at a tobacco retailer, the invoice or tax bill must contain a QR code as well as this statement in the payment terms section: “payable at a tobacco retailer” (payable auprès d’un buraliste). An invoice can only be paid using the methods indicated on the document.

The customer scans the code at a secure FDJ terminal at an authorized tobacco retailer location. The tobacco retailer’s screen displays the amount due, and the customer’s personal data is not accessible. Cash and card payments are accepted. Once a customer makes a payment, the tobacco retailer provides a receipt.

Note: Proximity payments are only accepted at FDJ terminals. However, retailers can use Stripe payment terminals to accept payments for other transactions. Stripe Terminal allows you to centralize the management of online and in-person payments, develop your own point-of-sale (POS) application, and offer your customers the most common payment methods.

Advantages of proximity payments

Proximity payments offer many advantages, including the following:

• A simple, practical, and secure payment method that customers appreciate
  
• A solution that includes and supports customers who do not have access to digital technology
  
• A modern payment process that leads to fewer unpaid bills
  
• Diversification of business activities for tobacco retailers that requires minimal training—especially helpful when dealing with a decline in tobacco sales
  

The partnership between the DGFiP and the tobacco retailer network is mutually beneficial. Tobacco shops benefit from an influx of new potential clients, and the DGFiP is able to collect faster. In addition, the service is free, confidential, and fast. Customers can pay their taxes, fines, and hospital charges close to home.