Ripoff Prague exchange offices no more! New Czech law protecting customers takes effect

If you’ve spent time walking around central Prague over the past decades, you’ve probably spotted this scene: a tourist who has just been ripped off at an exchange office demands their money back, to little avail.

Still, there’s no shortage of other shady exchange offices throughout central Prague that prey on uninformed tourists every day.

But now, thanks in part to Honest Guide’s efforts, those tourists have some recourse.

Earlier this year, an amendment to the Czech law governing foreign exchange offices was signed, and from this April, it has taken effect. The new amendment significantly increases consumers’ rights when dealing with exchange offices in Prague and throughout the rest of the Czech Republic.

The new amendment prohibits both commission fees for cash exchanges, and the promotion of “special” rates, in order to ensure a what-you-see-is-what-you-get environment.

But perhaps most importantly, the new amendment guarantees consumers a window for getting a refund. If a customer is unhappy with the amount of money they have received, they now have a legally-mandated three-hour window to get their money back, no questions asked.

Along with every transaction, customers must also be given a receipt, in Czech and English, which informs them of their rights including the three-hour window for a return. If a customer is not given the receipt with their rights listed, the three-hour window becomes six months.

When a refund is requested, the exchange office is also able to offer the customer a better rate.

The receipt is not required to be presented in order to obtain a refund, and only amounts up to 1,000 Euro will be covered, to prevent currency speculation.

While the law took place April 1 (and no, it’s no joke), Prague’s notorious exchange offices have some catching up to do.

Still, the third office, at Prague’s Wenceslas Square, did everything by the book. While Smlsal was originally given 18 crowns to the Euro, he was offered 25 crowns, about the official rate, when he returned for a refund.