Every day, we reach for our wallets to pay for goods or services. However, over the last few decades our wallets have changed dramatically – nowadays a wallet can be a card or a mobile phone, while online shopping and payments have become part of everyday life. We may choose to pay in cash, by card (including contactless), by mobile phone or simply by transferring the money instantly to the seller’s bank account. In this section, you’ll learn more about a number of modern payment options and secure payment methods.
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Where can I open a payment account?
The main instrument to manage your personal finances is a payment account. It allows you to receive money, make payments, keep track of your income and expenditure and check your balance. You can open a payment account with:
- a bank – any individual legally resident in Lithuania can open an account there;
- a credit union – only members can open an account there. To become a member of a credit union, you must pay a fee, a so-called basic share, and meet the specified criteria (e.g. live in a certain part of the country, practice a particular profession, etc.);
- an electronic money institution – here you can easily open an account online; such institutions often do not have physical customer service offices.
A full list of institutions with which you can open a payment account is available here.
| Important! To open an account, you may be required to provide a proof of identity. If you open an account with a payment institution online, you will need to provide a copy of your identity document and a photograph of yourself, depending on the institution’s requirements. |
| Important! If you are opening an account online, use publicly available sources to check the payment service provider’s reputation and make sure that it holds the necessary operating licences and is supervised. You can do this here. |
When making your choice, it is worth comparing payment service fees charged by different institutions. You can do this on the website of Lietuvos bankas.
Providing personal information is important!
When you open an account, the payment service provider will ask you to provide, and subsequently update periodically, personal information about the amount, frequency, source, etc. of your income. This is done in accordance with the ‘know your customer’ principle, followed by financial institutions in line with the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing. Under the legal requirements in this area, all banks and other payment service providers are obliged to ensure that their systems are not used by individuals who pose a threat to society, or for holding or transferring illegally obtained funds. A request for customers to provide additional information does not necessarily indicate any suspicions of wrongdoing or constitute unjustified collection of information. This is a standard procedure that applies to customers of all payment service providers. If a customer fails to complete this questionnaire and to provide the requested information, the financial institution may refuse to provide financial services, block the account, etc.
Can a family (spouses or partners) use a single joint account?
It could be convenient for a household to use a single joint account when they wish to manage their budget together, for example, to make payments on joint loans (mortgages, leases) and to pay the associated fees, charges or instalments. Such a joint account can be managed in two ways:
- via online banking: one of the partners opens an account in their own name and grants access to that account to the other partner, along with additional user rights. The specific terms and conditions for such accounts differ among payment service providers;
- by issuing additional payment cards: in this case, the account holder asks the payment service provider to issue additional payment cards to the specified persons. Payment cards may be issued not only to family members, but also to other persons specified by the account holder. The specific terms and conditions for issuing additional payment cards are set by a service provider.
Can I open an account for my children?
Yes. Most credit institutions operating in Lithuania allow to open a payment account for children over the age of 6. An account may be opened at a credit institution by submitting the identity documents of both the parents and the child, or online. Parental supervision is required to manage the account until the child reaches the age of 14.
With parental consent, children aged 14 to 18 can open an account, obtain a payment card, receive online banking login credentials and download a mobile banking app by visiting a branch of the credit institution. In some cases, parents can give their consent via online banking. If only a payment card is required and a young person already has a bank account, some banks allow it to be ordered via online banking. When opening an account, you must present the identity document required by the credit institution.
Why is it worth teaching children how to use a payment card?
- A child can not only pay with a payment card but also use a mobile app to log in to their account, check their balance and monitor where most of their money is spent. This also helps to develop personal finance management skills.
- If a payment card is lost, it can be blocked and, unlike cash, the money will not be lost.
- The card can be contactless, allowing a child to pay quickly for purchases, such as food in the school canteen.
How are users charged for payment services?
What is a basic payment account service?
Banks and credit unions are required to provide a basic payment account service, which includes the basic payment services needed. Specific payment services included in the basic account service and its maximum fee are set out by law and by resolutions of Lietuvos bankas.
The basic payment account service must be provided for no more than EUR 1, or EUR 0.5 per month for low-income residents. This fee has applied since 1 January 2025. The fee for the basic payment account service is linked to the minimum monthly wage and changes along with the scope of the payment services it includes. Both the fee and the scope of the basic payment account service are reviewed every three years.
Users are free to choose whether to use a basic payment account service or opt for another bank’s or credit union’s offer.
The basic payment account service currently includes the following basic payment services, which should be provided each month at no additional charge:
- opening an account;
- e-banking and a secure device to manage and log into an account (e.g. a code generator, a special app, etc.);
- at least 15 online credit transfers in euros per month, including instant payments, utility bill payments, e-invoice payments, payments either to an account at the same or another payment service provider, and direct debit transactions;
- crediting of incoming payments in euros to the account;
- payment card issuance and card payments;
- cash withdrawal from ATMs – at least EUR 800 per month;
- depositing cash into the account via ATMs.
Under the Republic of Lithuania Law on Payments, credit institutions that normally provide users with services included in the basic payment account service are also obliged to offer the basic payment account service. If a credit institution does not provide any of the listed services, for example, if it does not issue payment cards, it is not obliged to provide the basic payment account service.
What options are available for the users?
Payment service providers offer different ways of charging for payment services. Typically, users can choose a payment services plan or pay for each payment service separately.
Payment services plan
A payment services plan is a range of payment services provided for a fixed monthly fee. It usually includes account maintenance, a payment card, withdrawal of a certain amount of cash from ATMs, transfers to other people and utility bill payments.
It is usually worth opting for a payment service plan if you use several payment services, for example, if you have a payment card and make transfers.
If certain limits are set for the services included in the plan, for example, the amount of cash withdrawn per month, any other amounts exceeding these limits will be charged separately. If other services are used that are not included in the plan, an additional charge applies, for example, when using a credit card or making transfers in foreign currency.
Payment service providers often offer several different payment service plans designed to meet different needs of customers (e.g. different cash withdrawal limits, different types of cards) or aimed at different groups of people (e.g. special plans for young people or senior citizens).
Paying for each payment service separately
Consumers pay a fee to their payment service provider when they use a specific payment service. Usually, a periodic fee is paid for a payment account maintenance, while other services are charged only after they are used, for example, when a transfer is initiated. The use of a payment card is also subject to a periodic fee.
This pricing method is more favourable for consumers who do not use payment services very often, for example, those who hold an account for savings purposes and only make a payment when they have saved up for a larger purchase.
Every consumer should choose the method of paying for payment services that is the most favourable to them, considering how they use payment services. Information on different charging methods and applicable fees for payment services could be found on the websites, in the price lists of payment service providers, or by directly contacting the staff of the relevant payment service provider.
| Important! A payment service provider must inform the user of the applicable payment service fees by providing the payment service agreement in writing, by email or by other means. |
What are the means of personal identification?
When opening a payment account, you will need to choose a method of authentication, i.e. the means by which you will log in to your account and manage your funds. There are various methods of authentication:
- Smart-ID is an app that allows you to verify your identity and sign documents with a qualified electronic signature. The app works when you have an internet connection and offers two different account types: the more versatile ‘Smart-ID’ and the more limited ‘Smart-ID Basic’. The mobile app needs to be downloaded to a smartphone;
- a code generator is a small, handy device that generates a new password each time it is used. A code generator is issued by payment service providers. The device is not connected to the internet or a mobile network and generally does not have the legal effect of a qualified electronic signature, but this does not restrict access to e-government services when logging in via a bank;
- a mobile signature is a service provided by mobile network operators. Unlike Smart-ID, a mobile signature does not require an internet connection; a standard mobile network connection is sufficient. This service may be subject to additional fees charged by mobile network operators;
- a banking app is an app offered by an individual bank for the purpose of authentication. It requires an internet connection, while security is based on PIN codes or the increasingly popular biometric authentication (fingerprint or facial recognition).
It is recommended to have at least two different means of authentication available.
| Please be careful! Scammers often pose as members of the staff of a bank or ‘Smart-ID’. Do not disclose your login details and never click on links contained in a text message. If you have any suspicions, contact the bank using the contact details provided on its website. |
Which payment method should you choose?
Once you have opened a payment account, you can link a payment instrument to it. Payment instruments include the following:
- a debit card: to make a payment with a debit card, you must have sufficient funds in your account. In Lithuania, the majority of residents have debit cards. This is a relatively inexpensive payment method;
- a credit card has a credit limit set at the time of issue. This means that you can use it to make purchases on credit, which must be repaid. If the debt is repaid by the specified deadline, no interest is payable. Some credit cards also include travel insurance for both the cardholder and their family members. However, credit cards may be subject to higher fees than debit cards, therefore, when choosing a payment method, we advise you to carefully examine the stated prices and fees;
- a mobile app: if you have an account and a payment card, you can download a special mobile app to your mobile phone, which will also allow you to make contactless payments. However, not all payment service providers offer this option. Also, contactless payments are only possible on mobile phones that have the so-called NFC functionality.
Both credit cards and debit cards can be contactless. This means that you can make contactless payments at points of sale without entering a PIN into the card reader; simply tap the card against the reader and wait for the beep. At present, the amount of such a payment cannot exceed EUR 50. Payments by mobile phone are also contactless.
However, cash withdrawals require a payment card.
You can also use an app on your mobile phone to initiate an instant payment, by which the funds will be credited to the payee’s account within a few seconds. This service is available 24/7 and is provided by the major Lithuanian banks and electronic money institutions. Some banks offer a service for making transfers by a telephone number, which allows you to initiate an instant payment to another bank by selecting the payee from your phone contact list.
However, a payment card is not essential if you pay for goods or services exclusively by bank transfer or, for example, shop at online stores where you can pay without using a payment card (Bank Link service).
Is it safe to use payment instruments?
Only use payment instruments in accordance with the rules set out by your payment service provider. If you lose a payment instrument, notify your payment service provider as soon as possible!
Make sure you check your payment account statement every month. Your payment service provider will refund any debited funds if, upon discovering that a payment has been made without your consent or has been incorrectly processed, you notify your payment service provider no later than within 13 months after such a payment.
What do you need to know about payments by bank transfer?
A payment order means an instruction to a credit/e-money institution to transfer money from your account to the account of another person or company. Money can be transferred within Lithuania or abroad, in euros or another currency.
- Payment orders for transfers in euros within Lithuania and to other European countries that form part of the Single Euro Payments Area (SEPA) are carried out according to standard rules and are inexpensive.
- Transfers in currencies other than those of the European Economic Area (EEA) countries, or to payment institutions in other countries, are carried out through correspondent banks. These transfers are more expensive, and correspondent banks may also charge additional fees (these may not be known in advance). If you receive a transfer in a foreign currency or from outside the EEA, correspondent bank fees may also be deducted from the transfer amount.
| Important! Fees for transfers outside the SEPA area or in a currency other than those of EEA countries can be very high. |
| Important! It is essential to specify the accurate payee’s account number, as the payment service provider is under no obligation to verify whether the payee’s name matches that of the account holder. If you transfer money to the wrong account, your payment service provider will need to trace the payment and to try to recover the funds; however, the success of such recovery will depend on the account holder. This is particularly important if the payment institution offers instant payments, which are processed in a matter of seconds. |
Absolute majority of payments in Lithuania are instant payments. Instant payments made in euros are transferred instantly (within no more than 10 seconds) to the payee’s account on any day of the year and at any time of day. For such a transfer to take place, both payment service providers must provide the instant payment service.
Credit transfers are transferred within a couple of minutes if payment accounts of the payer and the payee are at the same payment service provider. If the payee’s account is held with another institution operating in Lithuania, the funds are to be credited to the payee’s account on the same working day, provided that the payment is initiated by 12:00 a.m. (In practice, payment service providers usually set a later time, and payments initiated before that time are processed on the same day). If the payee’s account is in another EEA country, credit transfers must be settled by the end of the next working day at the latest.
Transfers in other currencies or to countries outside the EEA take longer.
What is the service when you authorise another payment service provider to access your account in case of an online payment?
It is a payment method when the user, seeking to make an online payment, authorises a licensed intermediary to access their payment account via online banking so that the intermediary can generate and process the transfer on the payer’s behalf. This service is known as a payment initiation service.
Is it safe? Only licensed payment service providers may log in to a user’s account and make a payment on the user’s behalf. Legal acts prohibit access to personal data other than those required for the supply of services. Further information about the new payment services is available here.
What do you need to know when paying by payment card abroad and in a foreign currency?
If you are paying in a currency other than the euro, for example, while travelling, the amount payable in a foreign currency must be converted into euros, or more precisely, into the currency of the payer’s account.
Currency conversion services may be offered by the payer’s bank or by the merchant. Both must provide the same information regarding the currency conversion costs incurred by the payer, expressed as a mark-up on the exchange rate published by the European Central Bank (ECB).
When currency conversion is offered at a point of sale (including an ATM), the amount payable in the local currency and the amount in euros, as well as the currency conversion mark-up must be displayed to the payer; for example, PLN 100 equals EUR 24, with a currency conversion mark-up of 2.3 per cent.
What are your rights when making payments in Europe?
- International payments in euros from euro area countries to other EU countries cost the same as domestic payments in euros, while international payments in euros from non-euro area countries cost the same as domestic payments in the national currency.
- The fee for withdrawing cash in euros from another bank’s ATM, whether in your own country or in another Member State, should be the same.
- The user’s losses resulting from an unauthorised payment (e.g. made with a stolen credit card) cannot exceed EUR 50 (unless such a payment was due to the user’s own gross negligence). The user will not be held liable for unauthorised payments made after notifying the bank of the loss or theft of the card, or for online payments if the payment service provider (bank) does not have stronger authentication procedures in place.
- If you use direct debit services, i.e. you have authorised the payee to initiate periodic payments from your payment account, you have the right to dispute any incorrectly processed payment within eight (8) weeks. Any funds incorrectly debited must be refunded to you within ten (10) working days.
- You have the right to know whether any fees apply to the payments you make and, if so, what those fees are.
- When you pay with a payment card issued in the EU, the merchant can no longer charge you any additional fees.
For further information about your rights, please refer to the leaflet published by the European Commission.
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