Payment by sole proprietors through Nova Poshta only to a bank account: what has changed
3 April 19:11
Individual entrepreneurs will no longer be given cash at Nova Poshta branches. This was reported by Komersant ukrainskyi with reference to information from NovaPay LLC.
The company explained the new rules for working with cash for companies and entrepreneurs and emphasized that everything remained unchanged for private clients. They can receive funds as before, both to an account and in cash.
Why sole proprietors will no longer receive cash at NP branches
Individual entrepreneurs will no longer be able to receive cash directly at Nova Poshta branches – this rule was introduced in accordance with the National Bank of Ukraine’s Resolution No. 101, which came into force on August 29, 2024.
What exactly has changed?
Previously, entrepreneurs who used Nova Poshta’s cash on delivery service could immediately receive funds from customers in cash at the branch. Now, this option has been canceled: the funds paid by customers must be credited to the sole proprietor’s bank account, after which the entrepreneur can withdraw them from an ATM or cash desk.
This applies to any transfers or payments within the framework of business activities, including
- cash on delivery at Nova Poshta
- money transfers in favor of a sole proprietorship;
- payments through payment services.
What is the reason for these changes?
These restrictions are part of the NBU’s overall policy of strengthening control over financial transactions, combating money laundering, and bringing businesses out of the shadows.
The goal is to:
- to ensure transparency of cash flows;
- improve the level of accounting of entrepreneurs’ income;
- minimize the use of cash, which is difficult to track in the financial system.
How to receive your money now?
NovaPay (a financial company that services payments at Nova Poshta) has provided an updated algorithm:
1. A sole proprietorship enters into a payment control agreement with NovaPay.
2. He opens an account either directly with NovaPay or with any other Ukrainian bank.
3. After receiving payment from the client, the funds are immediately credited to the account.
4. The entrepreneur can manage the money: transfer, withdraw cash, pay expenses.
An account with NovaPay can be opened online through the mobile application, without visiting a branch. There are currently no fees for depositing or withdrawing funds.
Will this affect regular customers?
Nothing changes for individuals – customers who order goods online and pay by cash on delivery. They can still do the same as before:
- pay in cash upon receipt;
- pay by card or online;
- receive a refund in the usual way.
What are the consequences for business?
Positive:
- simplification of accounting;
- legalization of income;
- safer storage of funds on the account;
- the opportunity to use additional banking services (financing, integration with CRM, etc.).
Challenges include the following:
- businesses will have to switch to non-cash transactions;
- entrepreneurs who have previously avoided accounting for part of their income will lose their “shadow” advantages;
- businesses will have to get used to new procedures.
Read also: It will be easier for tax authorities to identify risky transactions in cash payments
Are there any exceptions?
No, there are no exceptions. The rule is mandatory for all sole proprietorships, regardless of size or field of activity. The only alternative is to open an account and enter into an agreement that will allow you to continue working within the new rules.
The NBU notes that this decision is another step towards the digitalization and formalization of the economy. It promotes transparency, control, and stability of the financial system. Entrepreneurs should adapt to the new conditions in advance to avoid disruptions.
