UBC July 2026 - Czech Koruna and Cash vs Cards

Photo Credit: John McArthur on Unsplash

In my post about airport transportation I mentioned the Czech Republic's currency, the Czech Koruna, CZK. 

To be honest, when we decided to visit Prague, I was under the assumption that I was going to need Euros for our trip. After all the Czech Republic has been a member of the European Union since 2004 and joined the Schengen Area (which is the world’s largest border-free zone) in 2007. So what's the deal with the currency? 

The Czech Republic hasn’t adopted the Euro mainly because most people prefer to keep their own currency, the Koruna, and the control that comes with it. Having their own central bank means they can set interest rates and respond to economic changes independently, which many see as a safer option. On top of that, the country hasn’t yet met all the economic criteria required to join the eurozone, so there’s little political urgency to push for it.

In the travel videos I had watched in preparation for our trip, everyone said you don't even need local cash, you can pay with credit card or your phone everywhere. They even warned not to use the money exchange offices that still exist in the touristy areas. They advertise to be "commission free" but use an unfavorable exchange rate. Same goes for ATMs.

Also, apparently there are people on the street that will want to offer you cash. You're not supposed to engage with them, as they are known to not even give you the Czech currency but some interesting looking banknotes that will under closer inspection turn out to be from an entirely different country. 

I was surprised to experience a "get 10 to 25% off if you pay cash" in some restaurants, and I was wondering why. This is the best I could come up with:

Avoiding taxes (the not-so-official reason)
Cash payments are easier to underreport or not record at all, which reduces VAT and income tax. I wouldn’t assume every place is doing this, but unusually large “cash discounts” are a classic red flag.

Skipping fees and intermediaries
Card payments come with fees (typically a few percent) and delays before the money arrives. Cash is immediate and fee-free. That said, in my opinion, this alone doesn’t justify a 20% discount.

Liquidity and simplicity
Cash gives instant liquidity and avoids dealing with payment providers, chargebacks, or admin. For small or independent businesses, that still matters, just not enough to explain big discounts on its own.

Cultural habits and legacy practices
In parts of Central and Eastern Europe, cash has historically been more common, and some habits linger, even though card payments are now widely accepted in cities like Prague.

In my neighbor country Germany, there is a popular saying, "Nur Bares ist Wahres," which literally translates to "only cash is real"; the German equivalent of "cash is king." 

In my experience, this still holds true for small businesses there, even after the pandemic. Just recently, I couldn't treat myself to an ice cream because I hadn't brought any Euro cash. I forgave Germany, though, as the charming town of Meersburg completely made up for it!

Personally, I find card payments much more convenient, secure, and hygienic.

What are your thoughts on the cash vs card debate?