Case Description

Company A and Company B signed a contract on waste disposal. Because the transaction amount is not large, Company A wants to pay in cash, or by WeChat or Alipay transfer. I don't know whether it is feasible.

Lawyer Analysis

Article 2 of the "Interim Regulations on Cash Management" revised and issued by the State Council on January 8, 2011 stipulates: "All organs, groups, troops, enterprises, institutions, and other units that open accounts with banks and other financial institutions (hereinafter referred to as account opening banks) (hereinafter referred to as account opening units)" "Must receive, receive, and use cash in accordance with the provisions of these Regulations, and accept the supervision of the opening bank.". "The State encourages account opening entities and individuals to adopt the method of transfer for settlement in economic activities to reduce the use of cash." Article 3 stipulates: "In addition to using cash for economic transactions between account opening entities within the scope specified in these Regulations, account opening entities shall conduct transfer settlement through the account opening bank." Article 5 stipulates: "Account opening entities may use cash within the following scope: (1) employee salaries and allowances; (2) personal labor remuneration; (3) various bonuses issued to individuals in accordance with national regulations such as science and technology, culture and art, and sports; and (4) Various labor insurance, welfare expenses, and other expenditures for individuals stipulated by the state; （5） The price for purchasing agricultural and sideline products and other materials from individuals; （6） Travel expenses that must be carried by business travelers; （7） Minor expenses below the settlement starting point; （8） Other expenditures that the People's Bank of China determines require payment in cash. The starting point for settlement in the preceding paragraph is set at 1000 yuan. "The adjustment of the settlement starting point shall be determined by the People's Bank of China and reported to the State Council for the record."

It can be seen from this that if the transaction amount between Company A and Company B is less than 1000 yuan, it can be paid in cash; otherwise, it should be settled by transfer through the deposit bank, and cannot be transferred through WeChat or Alipay.
If the transaction amount between Company A and Company B is less than 1000 yuan and is paid in cash, Article 11 of the Provisional Regulations on Cash Management shall be observed: "The cash receipts and expenditures of an account opening entity shall be handled in accordance with the following provisions: (1) The cash receipts of the account opening entity shall be deposited with the account opening bank on the same day. If it is indeed difficult to deposit on the same day, the deposit time shall be determined by the account opening bank;" Cash paid by an account opening company can be paid from the cash limit on hand of the company or withdrawn from the account opening bank. Direct payment (i.e., sitting expenses) from the cash income of the company is not allowed. "If it is necessary to make a cash withdrawal due to special circumstances, it shall be reported to the deposit bank for review and approval in advance, and the deposit bank shall verify the scope and limit of the withdrawal.". "The borrowing unit shall regularly report the borrowing amount and usage to the deposit bank;" Company A shall use cash on hand approved by the deposit bank, cash withdrawn from the deposit bank, or cash income approved by the deposit bank for payment. After receiving the cash, Company B shall promptly deposit it with the bank of deposit.