Payment Terminals for Sole Proprietors: Cashless Payments in Retail, Exemptions, and Penalties

Payment terminals for sole proprietors: who is obliged to accept cashless payments, what are the exceptions and what fines apply

As of March 2026, Ukrainian entrepreneurs are already operating under updated rules for accepting cashless payments. The main thing to consider: the law requires not just "having a POS terminal", but ensuring the buyer has the opportunity to pay cashless. At the same time, this obligation did not arise specifically on January 1, 2026, for all sole proprietors. At the end of 2025, the Cabinet of Ministers amended Resolution No. 894, and for Group 1 single tax payers, sellers via vending machines, traveling (mobile) trade, and sellers of self-grown or fattened produce, the deadline was postponed to a period three months after the termination or cancellation of martial law. (zakon.rada.gov.ua)

What exactly does the law require

The main rule is established by parts 28–29 of Article 38 of the Law of Ukraine "On Payment Services". Merchants are obliged to ensure the possibility of cashless payments for sold goods or provided services, including using electronic payment means, payment applications, and/or payment devices. That is, the law speaks more broadly than just about a classic bank POS terminal: the main thing is that the buyer can legally and practically pay for the purchase without cash. The deadlines when this exact obligation arises for different categories of merchants are determined by the Cabinet of Ministers of Ukraine by Resolution No. 894. (Zakon)

If an entrepreneur accepts payment precisely by electronic payment means used in payment systems, they must ensure the possibility of settlement by no less than three payment systems, one of which must be a multi-issuer payment system created by a resident of Ukraine. In practice, this issue is usually resolved together with the acquiring bank or another payment service provider when connecting acquiring. (Zakon)

Who is already obliged to accept cashless payments

The phased introduction of the obligation occurred as follows: from January 1, 2023 — for merchants in settlements with a population of over 25 thousand people; from January 1, 2024 — for merchants in settlements with a population of 5 to 25 thousand people; from January 1, 2025 — for merchants in settlements with a population of less than 5 thousand people. Since these three stages have passed, as of March 2026, the obligation to provide cashless payment already practically applies to all regular merchants who sell goods or provide services at stationary points, regardless of settlement size, if they do not belong to specially deferred categories. (Zakon)

Resolution No. 894 expressly extends this obligation to goods and services, the sale or provision of which is carried out remotely. This means that remote trading itself does not exempt a business from cashless settlement rules. For an online store or service, it is important that the buyer can pay for the order without cash in a legal way. (Zakon)

Who is not yet obliged as of March 2026

As of March 2026, the obligation has not yet arisen for four categories of merchants: sole proprietors — Group 1 single tax payers, merchants trading using vending machines, merchants engaged in traveling or mobile trade, and sellers of self-grown or fattened produce. For them, the requirement will begin to apply not from January 1, 2026, but three months after the termination or cancellation of martial law. This particular change was introduced by CMU Resolution No. 1768 dated 29.12.2025. (Zakon)

Separately, Resolution No. 894 establishes a territorial exception: its requirements do not apply to merchants operating in the territories of communities located in an active combat zone, under temporary occupation, surrounded or blockaded, as well as within three months after the cessation of hostilities, de-occupation or release from encirclement or blockade of such territories. (Zakon)

Is it mandatory to install exactly a POS terminal

No, the law does not require exactly a physical bank POS terminal in every case. The norm is formulated more broadly: a merchant must provide cashless payments, including the use of electronic payment means, payment applications or payment devices. Therefore, for some businesses, the requirement can be fulfilled not only by a classic stationary terminal, but also by another payment solution, if it complies with the law and realistically allows the buyer to pay for the purchase without cash. (Zakon)

At the same time, for settlements at a physical point of sale, the safest option from a legal point of view is acquiring via a payment device or payment application, which directly falls under the requirements of Law No. 1591-IX. The tax office in its clarification dated February 6, 2026, separately noted that a QR code by itself cannot be attributed to electronic payment means, payment applications, or payment devices. Therefore, relying solely on a QR code at the point of sale as the only way to fulfill the cashless payment requirement is risky. (if.tax.gov.ua)

How does this work for an online store and remote sales

For remote trade, the key importance is not the presence of a physical terminal, but the presence of a legal method of cashless payment. The tax service explains: if a product is ordered via a website, and payment is made remotely and exclusively in non-cash form, this model itself means fulfilling the requirement of Resolution No. 894 regarding providing the possibility of cashless settlements. But if payment is made at the point of receiving the goods, then the point of receipt must also be provided with the possibility of cashless payment in accordance with the deadlines set by Resolution No. 894. (zt.tax.gov.ua)

What the seller is prohibited from doing

A merchant is prohibited from in any way restricting a buyer's right to choose an electronic payment means for settlement if the business is obliged to accept cashless payment. It is also forbidden to set any additional fee for paying by card, payment application or payment device, as well as to set different prices for the same product or service depending on whether the buyer pays in cash or cashless. At the same time, the law allows the merchant to encourage the buyer to use a certain electronic payment means — but specifically encourage, not force. (Zakon)

From the consumer's side, this right is additionally protected by Article 17 of the Law of Ukraine "On Protection of Consumer Rights". The consumer has the right to freely make cashless settlements taking into account the forms of payment established for the seller, and the seller is obliged to assist the consumer in every possible way in choosing a payment form. The law explicitly prohibits any restriction of the consumer's ability to make a cashless payment if the seller is obliged to provide such an opportunity. (Zakon)

What fines apply in 2026

The main special fine for failure to fulfill the obligation to ensure the possibility of settlements using electronic payment means is provided by Article 163-15 of the Code of Administrative Offenses. For the first violation, a sole proprietor or an official of a legal entity is fined from 100 to 200 non-taxable minimum incomes of citizens, meaning from 1,700 to 3,400 UAH. For a repeated violation within a year — from 500 to 1000 non-taxable minimums, meaning from 8,500 to 17,000 UAH. (Zakon)

If the violation is also regarded as restricting the consumer's rights to a cashless settlement, a fine under Article 23 of the Law of Ukraine "On Protection of Consumer Rights" may be applied — 500 non-taxable minimum incomes of citizens, meaning 8,500 UAH. This specific sanction is provided for restricting or denying the realization of consumer rights established by part two of Article 17 of this Law. (Zakon)

General administrative sanctions for violating trade rules or the settlement procedure may also be applied separately. Article 155 of the Code of Administrative Offenses provides for a fine from 1 to 10 non-taxable minimum incomes of citizens, and Article 155-1 of the Code provides from 2 to 5 non-taxable minimums for persons carrying out settlement operations, and from 5 to 10 for officials. These norms do not replace the special fine under Article 163-15, but can be applied depending on the nature of a specific violation. (Zakon)

Who monitors compliance with these rules

Control over compliance with deadlines in which merchants must ensure cashless settlements is exercised by the central executive body implementing state tax policy. Control over the protection of consumer rights in this part is exercised by the central body implementing state policy in the field of state control over compliance with consumer protection legislation. That is, the issue of deadlines and obligations is primarily handled by the tax office, and the issue of violating buyer's rights — by consumer protection bodies. (Zakon)

Sole proprietors on Group 1 single tax and ECR/sECR

For Group 1 sole proprietors in 2026, it is important to separate two different issues. The first is when the obligation to provide cashless payment under Resolution No. 894 arises. For this group, it is deferred until three months pass after the termination or cancellation of martial law. The second is whether it is necessary to use ECR or software ECR. Clause 296.10 of the Tax Code of Ukraine stipulates that cash registers and/or software cash registers are not used by Group 1 single tax payers. Thus, the deferral of the obligation under Resolution No. 894 does not itself change the tax rule regarding the exemption of Group 1 from ECR/sECR. (Zakon)

If a business uses an ECR or sECR and accepts card payments

When an entrepreneur conducts payment via ECR or sECR, the receipt format must comply with the current Regulation on the form and content of settlement documents, approved by the Ministry of Finance Order No. 13. In the current edition of this Regulation, for a fiscal cash receipt for goods (services), among the details are provided, in particular, the identifier of the acquirer and the merchant or other details for their identification, the payment device identifier, the electronic payment means details in an allowed format, as well as the payment system name, authorization code or another code identifying the operation, and/or transaction code. (Zakon)

Therefore, an entrepreneur who accepts card payments in a store or at a point of sale and uses ECR/sECR should check not only the fact of acquiring connection, but also the correctness of receipt settings. If accounting is maintained in Torgsoft, it is advisable to separately configure payment types and integration with acquiring so that the sales amount is transferred without errors, and the fiscal receipt displays proper details of the cashless operation. (Zakon)

How an entrepreneur can prepare without unnecessary risks

An entrepreneur should check four things. First, does their business belong to categories for which the obligation has already arisen, or to those for which it is deferred until martial law ends. Second, does the chosen method of receiving funds comply with the law: for a stationary point, it is best to use a payment device or payment app, and not rely solely on a QR code. Third, if a business uses an ECR or sECR, you need to check if the receipt is formed correctly. Fourth, you cannot set a surcharge for a card, demand only cash, or set different prices depending on the payment method. (Zakon)

How to use bank terminals together with Torgsoft accounting program?

How to use a bank terminal on a smartphone (tap to phone) in Torgsoft?

Using a smartphone instead of a traditional physical POS terminal (Tap to Phone / Tap to Pay technologies) is a convenient solution that allows you to accept contactless payments by card or phone (NFC) directly onto your device. This is especially beneficial for mobile trade, courier delivery, or saving on renting banking equipment.

In Torgsoft, this function is implemented for three banks: PrivatBank, monobank, and Oschadbank. However, the logic of use differs depending on the chosen bank.

Here is a detailed guide on how this works and how to set up each option:

Option 1: Work via the Torgsoft mobile app (PrivatBank and monobank)

For these banks, accepting payments via smartphone is implemented exclusively inside the "Torgsoft 2.0" mobile application (available for Android and iOS).

What is needed for work:

How the sale happens:

Option 2: Smartphone as an external terminal for PC (Oschadbank / OschadPAY)

If you use the OschadPAY app from Oschadbank, your Android OS smartphone with an NFC module can act as a fully functional POS terminal that receives commands from the main Torgsoft program installed on a computer.

What is needed for work:

How to configure in Torgsoft (on PC):

How the sale happens:
The seller forms a receipt on a computer in Torgsoft, presses "Pay" and selects cashless settlement. The program transfers a command to the smartphone with the OschadPAY app. The client applies the card to the seller's smartphone, after which Torgsoft on the PC receives confirmation and closes the receipt.

Advantages of such a solution

Conclusion

Regulatory framework

Law of Ukraine "On Payment Services", Article 38; Resolution of the Cabinet of Ministers of Ukraine dated July 29, 2022, No. 894; Resolution of the Cabinet of Ministers of Ukraine dated December 29, 2025, No. 1768; Law of Ukraine "On Protection of Consumer Rights", Articles 17, 23; Code of Ukraine on Administrative Offenses, Articles 163-15, 155, 155-1; Tax Code of Ukraine, clause 296.10; Order of the Ministry of Finance dated January 21, 2016, No. 13. (Zakon)