Bizum: A Comprehensive Guide to the Popular Service

In the realm of online shopping, nine out of ten Spanish customers opt for a bank card as their preferred payment method. Following closely behind is Bizum's commission-free money transfer service, favored by 26% of users, with PayPal trailing at 19%. Notably, Bizum reported an impressive 45% increase in revenue for the year 2022, according to its annual report.

How to Get Started?
Getting started with Bizum is a breeze. Simply hold an account with one of the 23 participating banks, all of which are major players in the financial landscape. Each account can only be linked to a single phone number, ensuring streamlined usage.

What are the Service Limitations?
Users should be aware of certain limitations when utilizing the service. A maximum of 60 money transfers per month is permitted, with individual transactions ranging from a minimum of 50 eurocents to a maximum of 1,000 euros. Additionally, there is a daily cap of 2,000 euros for transfers between individuals.
In the event of receiving funds from an unfamiliar source, a grace period of 7 days is provided to cancel the transaction through the app and return the funds. However, if a mistaken transfer is initiated by the user, cancellation is not feasible.

Are Bizum Payments Taxable?
Tax considerations come into play primarily for individuals receiving income via Bizum. Additionally, transactions exceeding 10,000 euros must be declared. Moreover, the convenience of Bizum extends to tax and fine payments, with 20 public institutions in Spain currently accepting this method, a figure set to expand to over a hundred by the end of 2023 as per CaixaBank's plans.

Can Minors Utilize Bizum?
BBVA has taken strides to accommodate minors by offering fee-free bank accounts, available to children of any age, provided their parents are existing customers of the bank. This arrangement allows youngsters to engage in Bizum transactions, with transaction limits set by parental oversight, a feature hailed as highly popular among young users.

Payment Descriptions: What's Permitted?
While filling in the "concepto" field is optional, many users find it helpful to include a brief description for clarity, and occasionally, humor. However, caution is advised as certain phrases, even in jest, can trigger scrutiny. For instance, an attempt to input "Syrian weapons" by user X resulted in the cancellation of the payment. While there is no explicit list of prohibited terms, references to war, drugs, or illicit activities may raise red flags.
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