Is it legal for a business in the United States to refuse cash as a form of payment? (2024)

FAQs

Can businesses refuse to accept cash? ›

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. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.

In the United States, there is no federal law that requires a private business, person, or organization to accept currency or coins as payment for goods or services.

Massachusetts law requires retailers to “accept legal tender when offered as payment by the buyer.” It states: “No retail establishment offering goods and services for sale shall discriminate against a cash buyer by requiring the use of credit by a buyer to purchase such goods and services.”

Refusing cash payments could become illegal for most Florida businesses in 2024 under legislation sponsored by state Sen. Shevrin Jones, a Miami-Dade County Democrat, and state Rep.

“Prohibiting cash payments is an act of discrimination against the millions of Americans who do not have bank accounts or prefer cash,” said Senator Cramer in a press release from his office on June 23, 2022. “It also forces customers to exclusively use a less secure form of payment.

Under California law, it is not illegal to pay employees in cash. However, it is against the law to pay employees “under the table,” generally meaning paying in cash with an intent to avoid payroll taxes.

Yes Walmart still accepts dollars as cash payments when you purchase items. They even accept $2.00 bills as well as $50.00 bills and $100.00 bills. I understand that there were rumors that they were going to stop accepting those but it was just a rumor. Walmart will always accept cash.

Even if they won't accept a $2 bill out of ignorance that $2 bills are in fact real currency, they're within their rights not to accept it. Similarly, some convenience stores and small merchants post signs that they don't accept bills over $20; they're also within their rights to do so.

Primary tabs. Legal Tender refers to all U.S. coins and currency that issued by the government. U.S. Cash dollars are also a valid form of legal tender. Nonetheless, federal statutes do not require a seller to accept cash as a form of legal tender for payment of goods or services that were rendered.

The total is now up to 12 states – Arizona, Illinois, Kentucky, Montana, Maine, Missouri, New York, both North and South Carolina, Ohio, Oklahoma, and Tennessee. New York City implemented such a ban in 2020. Two bills each were introduced in the NY Senate and Assembly.

Is it legal to refuse cash in New York? ›

You can file a complaint about a store in New York City that refuses cash payments. This includes businesses that sell food, such as restaurants and mobile food vendors. Cash means U.S. paper currency and coins. Stores must accept cash unless they have a machine to convert cash to a prepaid card.

Even though it is technically not illegal to travel with large amounts of cash, it is definitely suspicious to many law enforcement officers. Carrying a large amount of cash can result in asset forfeiture and seizure, even if you are not arrested for an offense. Welcome to the world of asset forfeiture.

With employee compensation expectations rising and labor hours becoming more expensive, operators cannot afford to keep employees on the clock for the time it takes to drive to the bank for deposits and withdrawals. There is also a risk factor for restaurant employees handling large amounts of cash.

Rethinking Payment Systems

It's often more efficient — and more secure — to accept only electronic payment types like credit or debit cards. "Going cashless saves the business time, costs and the hassles of handling, storing and depositing paper money."

Driven by the increased use of debit card payments (98% of the population now own a debit card) and the growing popularity of contactless and mobile payment applications, many businesses, including those in the live events and hospitality industries have started to see the benefits of moving towards the cashless model.

Stores must accept cash unless they have a machine to convert cash to a prepaid card. They cannot charge more for paying in cash.

With employee compensation expectations rising and labor hours becoming more expensive, operators cannot afford to keep employees on the clock for the time it takes to drive to the bank for deposits and withdrawals. There is also a risk factor for restaurant employees handling large amounts of cash.

Pros. Accepting credit card payments for small business can be overwhelming. And for some small companies, accepting multiple payment options isn't a priority. You might choose to only accept cash because of factors like the price of your products, number of employees, and credit card fees.