Is it legal to refuse to accept cash as payment?

[ColtSeavers]

Since the panic-demic started, one of the casualties has been cash. What once was king has now been ostracized and stigmatized, and ultimately not allowed as a form of payment, as seen in many businesses around the nation.

Is this legal?

[Averageman]

I don't see how.

[Adrenaline_6]

A take out place I go to for lunch refuses cash. Only cards. I made it a point to say you don't want dirty cash, but you'll take and handle my possibly infected card? Awesome.

[Mozart]

Is this legal?

Well either way, the remedy is the same:

Ask to speak to the manager or even better, the owner. And tell him/her/ze/apacheattackhelo EXACTLY why they will not be receiving you and your sphere of influences’ business until they change their cash policy.

But in a respectful way. And be sure to ask questions like “don’t you value privacy?” And “you know they’ll tax everyone like crazy once they have all transactions recorded on computer!” See what they say.

[Diamondback]

Sure is, just ask many hotels.

Anybody else miss Traveler's Checks?

[kwelz]

Completely legal under federal law.

https://www.federalreserve.gov/faqs/currency_12772.htm#:~:text=There%20is%20no%20federal%20statute,state%20law%20that%20says%20otherwise.

[Renegade]

Since the panic-demic started, one of the casualties has been cash. What once was king has now been ostracized and stigmatized, and ultimately not allowed as a form of payment, as seen in many businesses around the nation.

Is this legal?

Of course. Does Amazon take cash?

[Slater]

I know one guy that uses nothing but cash (locally, at least) because "cash can't get hacked".

[MountainRaven]

Most places I see who refuse to take cash cite the coin shortage - and they don't refuse to take cash, they request you not pay in cash. Or if you're going to pay in cash, pay with exact change. I haven't seen any place actually refusing to take cash.


I know one guy that uses nothing but cash (locally, at least) because "cash can't get hacked".

If your cash gets stolen, you're not getting it back.

If your card gets stolen, you get another card. If it gets hacked, you get another card - and the money that was stolen from you gets returned. Just saying.

[The_War_Wagon]

I know one guy that uses nothing but cash (locally, at least) because "cash can't get hacked".

My mechanic, and my favorite, locally-owned ice cream place, and my favorite hotdog joint, ONLY take cash as well.

[SomeOtherGuy]

Completely legal under federal law.

https://www.federalreserve.gov/faqs/currency_12772.htm#:~:text=There%20is%20no%20federal%20statute,state%20law%20that%20says%20otherwise.

From your link:


Section 31 U.S.C. 5103, entitled "Legal tender," states: "United States coins and currency [including Federal Reserve notes and circulating notes of Federal Reserve Banks and national banks] are legal tender for all debts, public charges, taxes, and dues." This statute means that all U.S. money as identified above is a valid and legal offer of payment for debts when tendered to a creditor.

So what this means (along with parts I didn't quote), is that if a sale has not yet occurred, the business can refuse cash. However, if you have already taken goods or services and the seller demands payment, cash is legal tender, i.e. valid payment, for that debt.

Real life example: McDonald's could refuse to let you buy food with cash and just not serve you. But Chateau d'Pricey table-service restaurant cannot call the cops if, after eating your meal, you offer cash in payment and they would prefer not to take cash. Same for gas stations that don't require pre-pay, any motel that doesn't require pre-pay (doubt those exist), etc.

[ColtSeavers]

Completely legal under federal law.

https://www.federalreserve.gov/faqs/currency_12772.htm#:~:text=There%20is%20no%20federal%20statute,state%20law%20that%20says%20otherwise.

Thank you.

[ColtSeavers]

Of course. Does Amazon take cash?

Not what I was asking.

If amazon has a storefront down the street from you, are they allowed to not accept cash as payment if you physically go into their storefront to purchase goods?

[OH58D]

Last year, Bank of America's CEO indicated he would prefer a cashless society. As a consumer (non business customer) try to make a deposit with loose coins as part of the deposit. They will not accept loose change. It has to be rolled and they will give you the wrappers to do it, provided your loose change is enough for the full wrapper.

Eventually B of A won't even have tellers. They will have a few personal bankers in each branch, but they will push you to start using their phone app or online system called ERICA.

[chadbag]

That is why you go to a local credit union. I regularly deposit small amounts of change that my kids give me for various things they need to pay me for. Screw the big banks.

[rjacobs]

As a consumer (non business customer) try to make a deposit with loose coins as part of the deposit. They will not accept loose change. It has to be rolled and they will give you the wrappers to do it, provided your loose change is enough for the full wrapper.



Is this strictly at BofA? Because my local bank(not BofA) WONT accept coins already rolled. They will break them out and dump them in their counting machine. So I just bring them a big ass bag of mixed coins about once a year, they dump it in the machine, and then do a deposit based on that...


And back to the other question of legality... I was told by the Texas Attorney General office 6 or 7 years ago that its not legal for a business to not accept cash as it is "legal tender" per the federal government. I was in a restaurant/bar in Houston, had a meal, etc... and went to pay and they said "no cash, only card" to which I said "I only have cash, my debit card account is empty, so take my cash, I dont even need change, or I am getting a free meal"... I got a free meal... I couldnt understand the refusal to take cash up to the point they even gave me a free meal... So I emailed the attorney generals office and asked the question. I kept the response on my phone for a few years, but until Covid, never ran into it again.

[SomeOtherGuy]

And back to the other question of legality... I was told by the Texas Attorney General office 6 or 7 years ago that its not legal for a business to not accept cash as it is "legal tender" per the federal government. I was in a restaurant/bar in Houston, had a meal, etc... and went to pay and they said "no cash, only card" to which I said "I only have cash, my debit card account is empty, so take my cash, I dont even need change, or I am getting a free meal"... I got a free meal... I couldnt understand the refusal to take cash up to the point they even gave me a free meal... So I emailed the attorney generals office and asked the question. I kept the response on my phone for a few years, but until Covid, never ran into it again.

See post #11. This is the very meaning of "legal tender."

As for coins - I mostly use credit unions and they all have coin-counting machines that you just dump a jar (etc.) into, they spit out a receipt and you deposit that. No surcharge, no hassle. In my experience the worst credit union offers as good or better terms vs. the best local bank, and far better than any national-sized bank I've dealt with.

[OH58D]

Is this strictly at BofA? Because my local bank(not BofA) WONT accept coins already rolled. They will break them out and dump them in their counting machine. So I just bring them a big ass bag of mixed coins about once a year, they dump it in the machine, and then do a deposit based on that...

As a business, we have a couple of commercial bank accounts. This is a BofA thing. They are also starting to eliminate drive up banking teller windows. Instead they have increased the number of ATM's outside. The one I have dealt with has three outside ATM's - one at the front of the building and two drive ups.

[rjacobs]

As a business, we have a couple of commercial bank accounts. This is a BofA thing. They are also starting to eliminate drive up banking teller windows. Instead they have increased the number of ATM's outside. The one I have dealt with has three outside ATM's - one at the front of the building and two drive ups.

Maybe they will install a coin slot... You can sit there and clog up the drive through ATM for an hour or so... while you feed like 400 bucks worth of change into the thing LOL.

[GH41]

I don't blame them for not taking cash. Few people under 40 can tell time on an analog clock much less make change!

[26 Inf]

I don't blame them for not taking cash. Few people under 40 can tell time on an analog clock much less make change!

I drink iced tea with meals, a lot of it. Once as a joke, when I was at a meal on a ride with some buddies, I asked the waitress what tea cost. It was $2.99, and I told her that I thought $.50 was a fair price so she had better plan on bringing me six refills. I don't think I drank six, but she kept me full and earned a good tip. It's become a running joke when we go places.

A couple nights ago my wife and I went out to eat and when I asked for iced tea my wife said something snarky to me about getting my money's worth. The waitress looked kind of puzzled, so I asked the waitress how much tea cost. A dollar ninety nine. I told her a fair price is $.50 a glass and that I would need to be refilled until I reached that price per glass. She asked 'how many glasses will that be?'

Somehow that really saddened me.

[LowSpeed_HighDrag]

Well either way, the remedy is the same:

Ask to speak to the manager or even better, the owner. And tell him/her/ze/apacheattackhelo EXACTLY why they will not be receiving you and your sphere of influences’ business until they change their cash policy.

But in a respectful way. And be sure to ask questions like “don’t you value privacy?” And “you know they’ll tax everyone like crazy once they have all transactions recorded on computer!” See what they say.

I'm sure being a Karen will work just fine. That approach has worked for all other Karens.

[Mozart]

I'm sure being a Karen will work just fine. That approach has worked for all other Karens.

LoL

Seriously though, often times speaking to the owner will put the thought into their head that they’re doing wrong by their clients. I have spoken to 2 different establishments about their no-firearms policy, and both apologized like crazy but said their insurance company advised them to ban weapons. I can’t foresee that excuse working for banning cash.

Maybe being a Karen has zero effect. But I’d like to think it makes local business owners take a moment to rethink their position, especially if we make a good case for our side.

[Five_Point_Five_Six]

I bid a job a few years ago and my bid was $4875. The guy asked if I accepted cash. I laughed and said "yeah I'll take cash". Thought the guy was joking until he walked back into my shop an hour later with 5 G's in cash and told me to keep the change. Turns out, he was in the legal marijuana business and has a lot of cash on hand since they can't easily use banks.

[HMM]

I prefer cash for most things. One local burger joint stopped taking it and I read them the statement off my 20 dollar bill. I was with a coworker so I ate there but I haven’t been back. Unlike a lot of my landlord friends, I’m okay with tenants paying with cash. I actually prefer it but I’m also not in a horrible part of town when I pick it up from the one that pays in cash every once and a while. I just wish she’d pay with cash all the time!