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. Federal law makes U.S. currency a legal tender for paying debts. Most people think it means the shop has to accept the payment form. The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. Coins are legal tender throughout the United Kingdom for the following amount: £100 - for any amount. – user6204 Jul 11 '12 at 15:39 | >> 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. Businesses can refuse to take cash in most circumstances, according to the Reserve Bank of Australia. The posts further claim that when cash is turned down, the debt is legally recognized as paid. Even though it is legal currency, ... they can all be tracked. “And that’s all it means. My question is more of one of interest, I'm not likely to go back and harass them for 20 bucks. 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. 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'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. 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. The concept of “legal tender” only applies when there is a pre-existing debt. It may be legal tender, but more businesses are snubbing cash. You're handed some change in a store and the note is torn but stuck back together with ... you should refuse to accept the note on the grounds that ... Torn notes and the rules of legal tender “Legal tender” is what makes an official currency official. And as a small business owner, you must accept dollars for your products or services. It's because it only creates a hassle for the business unless they are low on small change. These posts come at a time when some businesses are refusing cash payments due to concerns about coronavirus transmission. Legal tender describes any official medium of payment recognized by law that can be used to extinguish a public or private debt or meet a financial obligation. Details in this link. Neither is legal tender but shops are happy to accept them as payment for goods or services. "all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. If legal currency was refused, a judge can (and most likely will) wipe the dept clean. Share. Yes; until such point that there is a debt, it's legal for stores to refuse legal tender. 'Legal tender has a very narrow and technical meaning, which relates to settling debts. Legal tender has a strict definition. Can you refuse legal tender? 30 replies 28.9K views isasmurf Forumite. Let's assume for a moment that you the customer only have $2.00 bills and the store rep. refuses to accept it. “And that’s all it means. However, as one answered above, they would be stupid not to accept it. Is this legal for them to do? If you walk into a shop, they can accept or refuse whatever they like. 'Refusal to accept payment in legal tender banknotes and coins is not unlawful,' it states. If they didn't wish to accept an old style pound today they're within their rights to do so. Does "legal tender" mean you can always pay with notes and coins? Yes. Ask Finder: Can businesses legally refuse to accept cash? ” He pointed out that in some parts of the country the only thing that is legal tender is, in … You might have heard someone in a shop say: “But it’s legal tender!”. If cash is king, how can stores refuse to take your dollars? 23 May 2005 at 8:15PM edited 30 November -1 at 12:00AM in I wanna buy-it or do-it. They can choose to refuse your note because a display of priced goods is merely an "offer to treat" ... for a taxi ride, a meal in a restaurant etc) then it is illegal to refuse legal tender. However, that is not what the law says. In order to comply with the very strict rules governing an actual legal tender transaction it is necessary, for example, to offer the exact amount due because no change can be demanded. “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. You don't owe them anything. £50 notes as a standard policy. Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. However, it doesn’t mean it has to be paper dollars. It is illegal to refuse legal tender for a debt. It means that a creditor must accept federal reserve notes in satisfaction of a debt. 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. Jay L ... “This note is legal tender for all debts public and private.” In short, what they choose to accept as payment is down to their discretion. stores can refuse anyones business or money. There is a widespread belief that if you give a business "legal tender" — official Australian coins or banknotes — they must accept it as payment. Typically in a store there never a situation where there is a debt owed to the store by the customer. 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