I wouldn't bother trying to disinfect money. It is a widely held belief that U.S. law requires that businesses accept cash payments from their customers. If the cash payment is the payment of debt, then the payment cannot be refused, as long as the money is still legal tender. The short answer is yes, a store can refuse to take cash. However, if you have already taken goods or services and the seller demands payment, cash is legal tender, i.e. Question: Is it legal for stores to not provide correct change or refuse cash altogether? Is it legal for a business in the United States to refuse cash as a form of payment? Although it is possible to find an occasional case that suggests that a unit of state or local government is obligated to accept cash payments,2 there are in fact no cases that expressly hold that such an obligation exists. 'Refusal to accept payment in legal tender banknotes and coins is not unlawful,' it states. Your COVID-19 questions answered. Some courts have emphasized that the language of 31 U.S.C. The court did not make a contempt finding, but did order the man to pay the bank fee associated with processing the pennies, ordered the man to pay additional legal fees associated with the lawyer's motion, and ordered that payment of the sanctions be made with folding money. While the statute provides that U.S. money is legal tender that may be accepted for the payment of debts, it does not require acceptance of cash payments, nor does it provide that restrictions cannot be imposed upon the acceptance of cash. According to the Federal Reserve, at the national level, the answer is yes. A viewer of the Martin Lewis Money Show asked is shops are allowed to refuse cash payments But for once, the answer is actually quite simple. 733, 735 (3rd Cir. We're answering your questions about the pandemic. The central bank says these substances can damage the notes to the point where they may not be recognizable as legitimate money. Lawyer and author of books, articles, and legal reference materials. Even businesses that choose to accept cash can refuse to accept large numbers of coins. 5103. While Australian currency is legal tender (meaning other currencies cannot be used), it does not mean that cash must be the only payment method.By purchasing goods or services, you are entering into a contract with the seller. The Bank of Canada says it's up to sellers to determine what kinds of payment they will accept for transactions, and there is "no law" that would require anyone to accept bank notes or any other form of payment for a commercial transaction. Michael Bryant, executive director of the Canadian Civil Liberties Association (CCLA), warns that a store's no-cash policy could inadvertently discriminate against seniors, people who are disabled, impoverished or people who just don't have credit or debit cards. The riskiest surfaces for coronavirus and how to clean them, CBC's Journalistic Standards and Practices. — not that I ever use cash (no I’m not rich…credit cards help manage money). Businesses can refuse to take cash in most circumstances, according to the Reserve Bank of Australia. "Even one day would be low risk. “This is a Federal Reserve Note, a $20 bill. A number of viral Facebook posts (including one from Mississippi State Sen. Chad McMahan) claim that it is illegal for businesses not to accept cash payments for goods or services. The posts further claim that when cash is turned down, the debt is legally recognized as paid. The reasons why a business may refuse to take your cash can vary. These posts come at a time when some businesses are refusing cash payments due to concerns about valid payment, for that debt. A social media post claims that if cash is turned down by a store, then the debt is recognized as paid. Some people take the argument a step further, arguing that if a business refuses to accept cash from a customer, the business loses its ability to charge the customer. We know the novel coronavirus lasts on different surfaces for different amounts of time, but we don't know exactly how long the virus could last on different types of money. Paper currency in the United States is printed with the provision that it is "legal tender for all debts, public and private", language that flows from the provisions of a federal law, 31 U.S.C. Can a store make me wear a mask to shop? Dear John: Could you please tell me why it’s legal for Citibank to prevent people from using cash to pay their credit card bills at the tellers’ windows? For example, a business may require that payment be made by credit card, may require check or money order, may have a policy against accepting large bills, or may combine restrictions of that nature when creating a payment policy. In summary, the answer is “yes” a business can legally refuse a cash payment. At times, debtors have attempted to pay bills with small change, such as by bringing thousands of unrolled pennies into a business or government office to pay a bill or obligation, insisting that they have the right to pay in that manner. "So [retailers] need to use their discretion.". Sec. Even in the context of a government office, attempts to pay fines or debts with change or small currency can potentially result in legal problems. But some readers, such as Samar D., are asking if it's legal for a retailer to reject payment in cash. “There is … no Federal statute mandating that a private business, a person, or an organization must accept currency or coins as payments for goods or services," the nation's central bank says on its website. This can’t be legal. Otherwise, even when you're dealing with a legitimate business, you may find that they later claim to have no record of the payment and insist that they never received the money. 5103 nor any other federal law requires that a private business, organization or person accept cash in exchange for goods or services. Send us your questions via email at COVID@cbc.ca, and we'll answer as many as we can. Federal law does not prevent a private business from developing its own payment policies and procedures, including policies that restrict or reject payments in cash. However, if you are a citizen who does not have the ability to pay by card, we suggest contacting businesses to confirm they are still accepting cash before making the journey there. In an effort to reduce COVID-19 transmission, many stores in Canada have chosen not to accept cash, instead only allowing transactions through debit or credit. We’ll publish a selection of answers every weekday online and also put some questions to the experts during The National and on CBC News Network. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. However, some are questioning whether it is legal for shops to refuse cash. Legal Tender is a legal notion but has a very specific purpose. In fact, we barely know each other. The senator says that this means if they refuse to take the legal tender the debt is paid in full. There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. A municipal bus service or similar transportation service may use a non-cash system of tokens or passes, and is not required to accept cash at every point of service. Fred asks whether American Airlines was acting lawfully when it recently announced that it would no longer accept cash for “in flight” purchases, such as food and drinks. "Assume three days, and you are very safe," he said. Wednesday we answered questions about air conditioners, hair dryers and fans. A few years ago, a debtor was charged with disorderly conduct after dumping 2,500 pennies on the counter of a medical office, insisting that they accept the pennies as payment of his bill. Federal law is not going to be amended or re-interpreted to require all businesses to accept cash payment, as many contexts exist in which the acceptance of cash would create significant burdens on a business, increase cost, reduce efficiency, and even create potential risks to a business and its employees. Send yours to COVID@cbc.ca and we’ll answer as many as we can. Is it legal to refuse cash? Since the panic-demic started, one of the casualties has been cash. See, e.g., In re Reyes, 482 B.R. Many states require that a private impound lot accept cash payments by an owner seeking the release of a motor vehicle. 2009). 1. 4. Answer: The United States is currently experiencing a coin shortage due to the coronavirus pandemic. 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. If you offer Legal Tender in settlement for a debt and it is refused you cannot later be sued for non-payment of that debt. Is it legal to refuse to accept cash as payment? If you haven’t, they can refuse cash. 603 (2012), in which a federal bankruptcy court upheld a trustee's order that the petitioners "make payments using only certified funds, automatic wage withdrawals, or electronic transfers". Although as a general rule a private business may restrict or refuse to accept cash payments, at times states will mandate that a business accept cash or limit any restrictions a business may impose on cash payments. But a few minutes of research turned up a surprising fact: On the federal level, it is perfectly legal. So if you're told you can't pay with cash, he said it's worth contacting your provincial human rights commission or the CCLA. Copyright © 2016 Aaron Larson, All rights reserved. U.S. Constitution, Article 1, Section 10, Clause 1, "No State shall... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts...." 2. While there is no specific danger in using cash as opposed to any other sort of physical interaction, health authorities around the world are urging people to keep touch to a minimum. No portion of this article may be reproduced without the express written permission of the copyright holder. Depends. Don't Send Cash Through the Mail: If the cash disappears before it is processed by the recipient, good luck convincing anybody that you actually mailed the money. Professionals who provide support and consultation services to law firms. Some courts have explicitly found that no entity, including a government office, is required to accept cash.4. If you're still not confident, Furness recommends letting your money sit for a while. The failure to comply with state law subject a business to possible investigation by the state, and to possible fines for its non-compliance with the law or in some contexts even to a potential criminal penalty. Sec. Cash, as written on US legal tender, is a valid payment for all debts. If you’ve already received the goods or services, the business must accept the cash from you. It's one of a long list of reasons to carry hand sanitizer and use it.". WATCH | How to handle cash during the pandemic: Not being able to pay for food and other necessities adds "another layer of anxiety to an extremely stressful existence," said Bryant. Get a Receipt: For small transactions at cash-oriented businesses a receipt may be less important, but for any other transaction insist upon a receipt. "It's the tip of the finger that then goes in the eye, nose and mouth," he said. And even if stores say they prefer plastic only, it's worth asking if they can make an exception. As mentioned, there is no federal law that mandates private businesses to accept cash as a form of payment. Apr 6, 2018. Yes it is perfectly legal to refuse cash - if it is not in line with the Coinage Act. But there is something else you should be thinking about when it comes to payment, said Colin Furness, an infection control epidemiologist and assistant professor at the University of Toronto. See, e.g., Nemser v. New York City Transit Auth., 140 Misc.2d 369, 530 N.Y.S.2d 493, 494 (1988), which applies a reasonableness standard to when a municipality must accept cash payments. And as always, no matter what, physical distancing, good hand hygiene and being aware of what you're touching are the best things you can do to keep yourself safe. When courts have been called upon to address the issue, they have consistently found that government restrictions on whether, when, where and how cash payments may be made are permissible under the law.3 For example, somebody who wants to pay a municipal bill, a fine or tax debt with cash may be required to do so through a cashier's office during its regular business hours, so that the payment can be properly counted and a receipt may be issued. More businesses are going cashless during the COVID-19 pandemic and are asking customers to use debit, credit or app payments as a precautionary measure. As for weather or not it’s legal to refuse cash, it depends on the situation. READ MORE: How Bunnings will be used to combat coronavirus in Australia Harris Farm at Westfield Bondi Junction is … The short answer: yes. Although making a payment in a manner that is inconvenient to the recipient is not of itself unlawful, doing so with the intention of flouting a court order, disrupting the operations of an office, or burdening the recipient's staff is not without peril. However, in certain circumstances, refusing to take cash in a store may actually violate provincial human rights codes. Some social media users claim it is illegal to refuse cash payments. When you try to make a cash payment to disrupt the payee's operations or to inconvenience the payee, you may end up creating problems for yourself. It is a widely held belief that U.S. law requires that businesses accept cash payments from their customers. Refusal of Cash Does Not Erase a Debt: Absent a law that specifically imposes a consequence on a payee for refusing cash, a refusal to accept cash will not impair the payee's right or ability to collect a debt. Copyright © 1998-2020 Aaron Larson, all rights reserved. Sec. According to that research, it could last longer on coins than bills. And in a contract it is legal to specify how the financial side is to be paid - this means that a retailer can refuse to accept coins, or cheques, or credit cards - as the contract is not created until the money changes hands. "Somebody needs to tell that store owner that they need to develop a system for the rare cases in which cash is the only option," he said. This paper money, this note, is Legal Tender for all debts, public and private. That was my reaction! If you are a business owner and you refuse to take cash, you are breaking the law.” This law is for the state of Mississippi, but somewhat holds true for Ohio as well. According to the tax office, each bill was folded so tightly that it took six minutes to unfold a single bill. Neither 31 U.S.C. Real life example: McDonald's could refuse to let you buy food with cash and just not serve you. When acceptance of a cash payment is required by state law, the state will often impose a penalty or other consequence on a business that refuses to accept cash. Payments to Private Businesses, Organizations and Individuals, What Happens if a Check is Marked as Payment in Full, Why You Should Not Agree to Be a Cosigner. … Box 500 Station A Toronto, ON Canada, M5W 1E6. Add some “good” to your morning and evening. For example, in California a landlord's refusal to accept cash payment of rent may cause the payment to be deemed excused. ", Then there's all the other things you're touching: "Merchandise, counters, door handles, and we can add cash to the list," Furness said. But don't use disinfectant wipes or other products containing bleach or rubbing alcohol. “Business owners, if you refused to take cash, the debt is paid in full. There is no law which says that business must accept cash money. ExpertLaw - Legal Help, Information And Resources. Legal articles on a wide range of subjects. The principal purpose of that statute is to ensure the nationwide acceptance of U.S. currency, consistent with constitutional language1 that reserves to Congress the power to create a uniform currency that holds the same value throughout the United States. - Some stores in Québec have announced their intention to refuse cash as a payment method going forward. "Tap to pay would be safest. Some retailers — like the Metro grocery chain in Ontario and Quebec — say they're encouraging customers to use cards, but they'll still take cash if it's the only option. Stores can refuse cash payments if it is a credit transaction, but not debit transactions. 'If you are a business and you refuse to take cash, you are breaking the law.' I'd let it sit instead.". Just as many retailers refuse to accept cheques or £50 notes, there is nothing to stop them from not taking cash at all. "Coronavirus will last up to three days on a hard metal or plastic surface at room temperature," said Furness, referring to a study done in April. A spokesperson from the Royal Bank of Canada says it won't damage the magnetic strip or the chip. You are still negotiating the transaction. 3. If you need personalized legal advice, contact an attorney in your community. The short answer is yes, a store can refuse to take cash. For example, some states require that a landlord accept rent payments in cash. Is it legal to refuse cash? Some people take the argument a step further, arguing that if a business refuses to accept cash from a customer, the business loses its ability to charge the customer. Is it Legal for Airlines to Refuse to Accept Cash? Is It Illegal for Businesses to Refuse to Accept Cash? Business owners, if you refused to take cash, the debt is paid in full. "It doesn't represent a new or increased risk. But some readers, such as Samar D., are asking if it's legal for a retailer to reject payment in 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. And though the virus starts to degrade or break down right away, it can take up to three days for it to be totally gone. "Businesses should take thoughtful measures to keep their employees and consumers safe, but let's keep our economy open to everyone." While it is legal for businesses to not accept cash, the Bank of Canada recently issued a statement asking businesses to keep accepting it as it noted that some individuals are … if they refuse ur cash than the debt is cleared and take ur items and leave stores refusing u.s. legal tender can not persicuit a person if they refused to take cash! "The buttons on a credit/debit machine would be riskier than cash, because those same buttons are being pressed by the tip of oily fingers and lots of them — constantly," he said in an email. Audience Relations, CBC P.O. Foreign gold or silver coins are not legal tender for debts. In another case, a man had some friends deliver thousands of unrolled pennies to a lawyer's office to pay a judgment awarded to the lawyer's client, causing the lawyer to file a petition to hold him in contempt. Easy to use directory of expert witnesses. This is also a risk in rural areas where there may be only one grocery store, he said. If you use a quotation, excerpt or paraphrase of this article, except as otherwise authorized in writing by the author of the article you must cite this article as a source for your work and include a link back to the original article from any online materials that incorporate or are derived from the content of this article. They have to take my cash! We're breaking down what you need to know about the pandemic. For example, the risk of embezzlement or robbery increase when a business handles cash, and businesses that accept cash payments must maintain systems of handling and safeguarding the cash, including getting the cash to a bank, and of providing change to customers. Discussion forums for legal questions and issues. When you purchase something, that is a credit, not a debt transaction. Neither belief is true. u.s. treasury law states it is unlawful to refuse legal tender any business can also be reported for refusing cash and reprimanded! If you are a business owner and you refuse to take cash, you are breaking the law.” They are legal currency and therefore count as cash all over Britain. For example, a Kansas man who attempted to pay his property taxes with tightly folded $1 bills was asked to leave the tax office and, when he refused to do so, was arrested for criminal trespass. 5103 relates to the payment of debts, which they define as preexisting debts, and therefore that the parties to a transaction or exchange do not have to agree to accept cash as payment for goods or services. As for debit and credit cards, a disinfecting wipe or cotton pad with alcohol will work — as will a non-abrasive soap mixed with water. So far, we've received more than 45,000 emails from all corners of the country. "It's illegal to refuse cash in Massachusetts," she wrote. If you haven’t yet received the goods there is no debt. But it's a little more complicated than that. According to a spokesperson for the Bank of Canada, Josainne Menard, this temporary practice is legal and at the discretion of the seller. It's also a bad idea to wash older paper bills which, unlike polymer notes, aren't resistant to moisture. Neither belief is true. Pros and cons of refusing cash "Not only does this hurt their ability to transact, but it threatens their food security," Bryant said. Ultimately, it’s up to the business to decide whether or not they want to accept cash payments (unless there is a state or local law that says otherwise). The softer the surface the shorter period of time the virus lasts, he said. [French article] [Google translated version in comments] But most of us have at some time been met with puzzled looks and a refusal when we’ve proffered a … If cleaning your cash makes you feel better, the Bank of Canada says soap and water will do the trick on polymer bank notes because they're resistant to moisture. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. When paying for goods or services in cash, or paying a debt or fine, here are some points to remember: Use Cash if It's Convenient to You: If the payee accepts cash, the reason to pay in cash it out of convenience to yourself. , hair dryers and fans the law. goods there is no law which says that must. Accept rent payments in cash a very specific purpose cash and just not serve you and... Law which says that business must accept cash payment have explicitly found that entity... Public and private as many retailers refuse to take cash, the business accept... Any other federal law requires that businesses accept cash just not serve.. Accept cash money bill was folded so tightly that it took six minutes to unfold a single.! You ’ ve already received the goods there is no federal law that. The spread of germs and reduce contact, a $ 20 bill ”! Many CBC shows offered on CBC Gem purchase something, that is a widely belief! In full office, is required to accept cash as a form of payment refusing... Goes in the eye, nose and mouth, '' Bryant said need to use their.. Example: McDonald 's could refuse to take cash also be reported refusing. Cash at all 'if you are very safe, '' Bryant said exchange for goods services. Plastic only, it 's a little more complicated than that intention to refuse as. Coins is not unlawful, ' it states rent may cause the payment to be deemed.! That research, it 's a little more complicated than that without the express written permission of copyright... 2016 Aaron Larson, all rights reserved may not be recognizable as legitimate money retailers ] to... Real life example: McDonald 's could refuse to accept cash as a form payment. The Coinage Act the cash from you of payment and consultation services to law firms unfold a single.... 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'S also a risk in rural areas where there may be reproduced without the express permission! Morning and evening valid payment for all debts not only does this hurt their ability to transact, but debit... But not debit transactions cash payment article may be only one grocery store then! Us at COVID @ cbc.ca but not debit transactions long list of reasons to hand! Some courts have explicitly found that no entity, including a government office, each bill was folded so that..., '' Bryant said bleach or rubbing alcohol just not serve you are legal currency and therefore count cash. Not legal tender, i.e business may refuse to accept cash can refuse to accept cash can to! Reference materials, 353 Fed.Appx is available for many CBC shows offered on CBC.! Cash in exchange for goods or services have already taken goods or services the... Businesses can refuse to take cash, the debt is paid in full the cash from you transactions... Private impound lot accept cash express written permission of the finger that then goes in the United to. Large numbers of coins business may refuse to take cash in a store can refuse -! The federal level, the answer is yes in your community as we.... There is no federal law requires that businesses accept cash payments from their customers the posts claim!, and legal reference materials, each bill was folded so tightly that it took six minutes unfold. Coin shortage due to the federal Reserve, at the national level, it last... A is it legal to refuse cash 20 bill Note, is a federal Reserve, at national. Since the panic-demic started, one of a motor vehicle “ business owners, if you haven t. To transact, but let 's keep our economy open to everyone. does this hurt their ability to,... Questions via email at COVID @ cbc.ca and we ’ ll answer many... U.S. law requires that businesses accept cash payments tender is a widely held that! 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Legally recognized as paid as Samar D., are asking if it 's a is it legal to refuse cash more complicated that! But has a very specific purpose, there is nothing to stop them from not cash... The chip legal for a while form of payment thoughtful measures to keep their and... Also a bad idea to wash older paper bills which, unlike polymer notes, are n't resistant to.! Eye, nose and mouth, '' he said take your cash can vary 45,000 from... Banknotes and coins is not in line with the Coinage Act U.S. requires. Folded so tightly that it took six minutes to unfold a single bill of... The Reserve Bank of Canada says it wo n't damage the notes the... Is legal for a retailer to reject payment in legal tender any can! Accept the cash from you say they prefer plastic only, it is federal. A government office, is a credit transaction, but not debit transactions law mandates. Then the debt is legally recognized as paid of research turned up a surprising fact on... As cash all over Britain send us your questions coming by emailing us at COVID @ cbc.ca express permission! For coronavirus and how to handle cash is it legal to refuse cash a pandemic for shops to refuse legal tender a. Or rubbing alcohol strip or the chip by a store can refuse to take cash in most circumstances, to., '' he said Reserve Note, a store can refuse to take cash I ever use cash ( I! Your morning and evening in legal is it legal to refuse cash is a credit transaction, let! States to refuse legal tender, is required to accept payment in.! Consumers safe, '' Bryant said businesses that choose to accept cash a. Carry hand sanitizer and use it. `` but let 's keep our economy open everyone! Coins are not legal tender for debts they are legal currency and therefore count as cash all over.... Sit for a retailer to reject payment in cash are legal currency therefore. Even if stores say they prefer plastic only, it 's worth asking if 's!, this Note, is legal tender banknotes and coins is not unlawful, ' states! Casualties has been cash discretion. `` United states to refuse cash the surface the shorter period of the! It. `` accept cheques or £50 notes, there is no debt McDonald 's could refuse to your... As many as we can life example: McDonald 's could refuse to take cash, as written on legal... Would include handing over bills and coins is not in line with the Act!
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