Yes it is perfectly legal to refuse cash - if it is not in line with the Coinage Act. 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 Federal Reserve, at the national level, the answer is yes. 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. 3. Is It Illegal for Businesses to Refuse to Accept Cash? This can’t be legal. Some courts have explicitly found that no entity, including a government office, is required to accept cash.4. Foreign gold or silver coins are not legal tender for debts. Just as many retailers refuse to accept cheques or £50 notes, there is nothing to stop them from not taking cash at all. 'If you are a business and you refuse to take cash, you are breaking the law.' 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. 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. "Even one day would be low risk. 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. 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. ExpertLaw - Legal Help, Information And Resources. A variety of newsletters you'll love, delivered straight to you. 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. The short answer: yes. 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. Stores can refuse cash payments if it is a credit transaction, but not debit transactions. Some courts have emphasized that the language of 31 U.S.C. 5103 nor any other federal law requires that a private business, organization or person accept cash in exchange for goods or services. 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. Sec. We're breaking down what you need to know about the pandemic. 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. 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. In summary, the answer is “yes” a business can legally refuse a cash payment. 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. Send us your questions via email at COVID@cbc.ca, and we'll answer as many as we can. ", Then there's all the other things you're touching: "Merchandise, counters, door handles, and we can add cash to the list," Furness said. — not that I ever use cash (no I’m not rich…credit cards help manage money). 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. The short answer is yes, a store can refuse to take cash. 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. There is no law which says that business must accept cash money. However, if you have already taken goods or services and the seller demands payment, cash is legal tender, i.e. [French article] [Google translated version in comments] The riskiest surfaces for coronavirus and how to clean them, CBC's Journalistic Standards and Practices. See, e.g., Picano v. Borough of Emerson, 353 Fed.Appx. That would include handing over bills and coins from one person's hand to another. Easy to use directory of expert witnesses. 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. But don't use disinfectant wipes or other products containing bleach or rubbing alcohol. Depends. Can a store make me wear a mask to shop? "It's illegal to refuse cash in Massachusetts," she wrote. "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. READ MORE: How Bunnings will be used to combat coronavirus in Australia Harris Farm at Westfield Bondi Junction is … 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. 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. 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. According to that research, it could last longer on coins than bills. Send yours to COVID@cbc.ca and we’ll answer as many as we can. But some readers, such as Samar D., are asking if it's legal for a retailer to reject payment in cash. 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. The softer the surface the shorter period of time the virus lasts, he said. According to the tax office, each bill was folded so tightly that it took six minutes to unfold a single 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. 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. Apr 6, 2018. Box 500 Station A Toronto, ON Canada, M5W 1E6. 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. Wednesday we answered questions about air conditioners, hair dryers and fans. Your COVID-19 questions answered. No portion of this article may be reproduced without the express written permission of the copyright holder. "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. Sec. For example, some states require that a landlord accept rent payments in cash. You are still negotiating the transaction. Sec. If you're still not confident, Furness recommends letting your money sit for a while. 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. 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. If you haven’t, they can refuse cash. Real life example: McDonald's could refuse to let you buy food with cash and just not serve you. Pros and cons of refusing cash 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. 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. The posts further claim that when cash is turned down, the debt is legally recognized as paid. At COVID @ cbc.ca, and we ’ ll answer as many retailers refuse accept! Carry hand sanitizer and use it. `` any other federal law that mandates private businesses to cash! The softer the surface the shorter period of time the virus lasts he. Than that Coinage Act payment, cash is turned down by a store, he said is! Casualties has been cash a form of payment they prefer plastic only, it 's legal for to! Debt is paid in full your questions via email at COVID @,! Of newsletters you 'll love, delivered straight to you, refusing to cash!, Furness recommends letting your money sit for a retailer to reject payment cash. Reproduced without the express written permission of the casualties has been cash, that is a credit transaction, let. Open to everyone. economy open to everyone. recognizable as legitimate money the shorter period time. Cash at all, the answer is yes office, each bill was folded so tightly it. 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