The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. If you walk in with a bagful of coins, for instance, they can refuse simply because they don’t want the bother of counting them all. These posts come at a time when some businesses are refusing cash payments due to concerns about coronavirus transmission. It's legal tender and must accept it IF it is a small denomination; e.g., they could refuse to accept a large bill such as $1,000. On the drive back home, about an hour and a half each way I might add, I vaguely remember learning something in school about it being against the law to refuse legal tender (cash) as payment but that was before credit cards and computers. Can you refuse legal tender? “Legal tender” is what makes an official currency official. If you walk into a shop, they can accept or refuse whatever they like. “Legal tender has a strict definition. While cash and coins are legal tender for all debts, there is no federal law that requires businesses to accept them in exchange for goods and services, according to the Federal Reserve’s website. The posts further claim that when cash is turned down, the debt is legally recognized as paid. Legal tender has a strict definition. Businesses can refuse to take cash in most circumstances, according to the Reserve Bank of Australia. Share. I went to the store to purchase an item and gave them my last bill, which was torn slightly off the end, and they refused it as payment. You might have heard someone in a shop say: “But it’s legal tender!”. But that’s not the case. 23 May 2005 at 8:15PM edited 30 November -1 at 12:00AM in I wanna buy-it or do-it. It also means that cash is a legal tender for all public and private debts. There is some strange law in place that a place of business doesn't have to accept anymore then $2.00 in loose change here in Canada. If they didn't wish to accept an old style pound today they're within their rights to do so. Typically in a store there never a situation where there is a debt owed to the store by the customer. Details in this link. You can … Martin said: “The legal tender is interesting. £50 - for any amount. £20 - for any amount A shop owner can choose what payment they accept. 5103, entitled "Legal tender," which 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." If you get to the checkout line at the local Piggly Wiggly and the cashier demands payment in rubles or pesos you have every right to say “Sorry buddy, but I’ve got some Federal Reserve notes burning a hole in my pocket.” Is it legal for a business in the United States to refuse cash as a form of payment? Fact checked. Let's assume for a moment that you the customer only have $2.00 bills and the store rep. refuses to accept it. You don't owe them anything. Now we have a Mexican standoff. There is a widespread belief that if you give a business "legal tender" — official Australian coins or banknotes — they must accept it as payment. Imprinted on each bill is this notice: “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE” Observe the word, “debt.” Which facially means you owe somebody money, but there is more to it, than that. If legal currency was refused, a judge can (and most likely will) wipe the dept clean. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. Telephone bills can also be paid at New Zealand Post Shops where cash and cards can be used. Neither is legal tender but shops are happy to accept them as payment for goods or services. Federal law makes U.S. currency a legal tender for paying debts. 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. It means that a creditor must accept federal reserve notes in satisfaction of a debt. 30 replies 28.9K views isasmurf Forumite. Does "legal tender" mean you can always pay with notes and coins? My question is more of one of interest, I'm not likely to go back and harass them for 20 bucks. £50 notes as a standard policy. >> I think it is important to call out that refusing currency for a debt is not illegal in the sense that you will be fined or imprisoned. "all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. “And that’s all it means. – user6204 Jul 11 '12 at 15:39 | “That means if a court has awarded you a debt, if someone tries to settle and pays in legal tender, you can’t refuse it. 'Refusal to accept payment in legal tender banknotes and coins is not unlawful,' it states. The concept of “legal tender” only applies when there is a pre-existing debt. They can demand payment in shiny beads if they want to, it's completely up to them. And as a small business owner, you must accept dollars for your products or services. 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. Ask Finder: Can businesses legally refuse to accept cash? While there isn't sufficient evidence to show that cash is riskier than card, it's prompted many Australians to argue that because cash is legal tender businesses must accept it under law. Legal tender is currency that a creditor must accept from a debtor as settlement of a debt; it has no other meaning aside from in this specific context. Claim: U.S. Treasury Law Says It Is Unlawful For Businesses To Refuse TO Take Cash In short, what they choose to accept as payment is down to their discretion. However, as one answered above, they would be stupid not to accept it. Angus Kidman Updated Jul 22, 2020. Coins are legal tender throughout the United Kingdom for the following amount: £100 - for any amount. In the UK, legal tender is only for the payment of a debt- so shops are under no obligation to accept and can refuse e.g. What does legal tender mean? "if they refuse ur cash than (sic) the debt is cleared and take ur items and leave stores refusing u.s. legal tender can not persicuit (sic) a person if they refused to take cash!" With U.S. paper money imprinted with the declaration, "this note is legal tender for all debts, public and private", when can a business or government office refuse to accept cash payments. It is illegal to refuse legal tender for a debt. Yes. A business can refuse cash (paper currency) payment pretty much in all cases provided it's a reasonable policy and/or notified during/in advance of contracting. Even though it is legal currency, ... they can all be tracked. Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. If cash is king, how can stores refuse to take your dollars? Is this legal for them to do? “That means if a court has awarded you a debt, if someone tries to settle and pays in legal tender, you can’t refuse it. Equally, shops can refuse to … If you owe someone some money, they are obliged to accept legal tender for payment of that debt. Yes; until such point that there is a debt, it's legal for stores to refuse legal tender. stores can refuse anyones business or money. If you want to pay for a pack of gum with a £50 note, it’s perfectly legal to turn you down. Most people think it means the shop has to accept the payment form. 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