30 replies 28.9K views isasmurf Forumite. 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." Typically in a store there never a situation where there is a debt owed to the store by the customer. 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. 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. In short, what they choose to accept as payment is down to their discretion. Let's assume for a moment that you the customer only have $2.00 bills and the store rep. refuses to accept it. Jay L ... “This note is legal tender for all debts public and private.” Fact checked. Details in this link. You might have heard someone in a shop say: “But it’s legal tender!”. 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. “And that’s all it means. 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. Most people think it means the shop has to accept the payment form. Federal law makes U.S. currency a legal tender for paying debts. 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. It may be legal tender, but more businesses are snubbing cash. 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.” Businesses can refuse to take cash in most circumstances, according to the Reserve Bank of Australia. Coins are legal tender throughout the United Kingdom for the following amount: £100 - for any amount. 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. My question is more of one of interest, I'm not likely to go back and harass them for 20 bucks. However, as one answered above, they would be stupid not to accept it. 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. 23 May 2005 at 8:15PM edited 30 November -1 at 12:00AM in I wanna buy-it or do-it. Equally, shops can refuse to … If they didn't wish to accept an old style pound today they're within their rights to do so. Angus Kidman Updated Jul 22, 2020. 'Legal tender has a very narrow and technical meaning, which relates to settling debts. 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. Telephone bills can also be paid at New Zealand Post Shops where cash and cards can be used. If you owe someone some money, they are obliged to accept legal tender for payment of that debt. £50 notes as a standard policy. Claim: U.S. Treasury Law Says It Is Unlawful For Businesses To Refuse TO Take Cash 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. Is it legal for a business in the United States to refuse cash as a form of payment? A shop owner can choose what payment they accept. Ask Finder: Can businesses legally refuse to accept cash? The concept of “legal tender” only applies when there is a pre-existing debt. £50 - for any amount. It is illegal to refuse legal tender for a debt. 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. ” He pointed out that in some parts of the country the only thing that is legal tender is, in … Yes; until such point that there is a debt, it's legal for stores to refuse legal tender. 'Refusal to accept payment in legal tender banknotes and coins is not unlawful,' it states. If you walk into a shop, they can accept or refuse whatever they like. Neither is legal tender but shops are happy to accept them as payment for goods or services. 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 don't owe them anything. 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 has a strict definition. The posts further claim that when cash is turned down, the debt is legally recognized as paid. "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!" If legal currency was refused, a judge can (and most likely will) wipe the dept clean. “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. 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. What does legal tender mean? August 4, 2016 7.48pm EDT. “Legal tender” is what makes an official currency official. "all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. £20 - for any amount And as a small business owner, you must accept dollars for your products or services. If you want to pay for a pack of gum with a £50 note, it’s perfectly legal to turn you down. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Can you refuse legal tender? 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. 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. Now we have a Mexican standoff. 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. Martin said: “The legal tender is interesting. 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 If cash is king, how can stores refuse to take your dollars? Share. There is a widespread belief that if you give a business "legal tender" — official Australian coins or banknotes — they must accept it as payment. Even though it is legal currency, ... they can all be tracked. However, it doesn’t mean it has to be paper dollars. It means that a creditor must accept federal reserve notes in satisfaction of a debt. 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. They can demand payment in shiny beads if they want to, it's completely up to them. It also means that cash is a legal tender for all public and private debts. stores can refuse anyones business or money. 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