Is it Legal For a Business to Refuse Your Cash Payments?
With everything going on recently, many places have signs posted asking that any payment(s) be made using a debit/credit card. This got me thinking, can a business legally refuse any form of "legal tender"?
Apparently I am not the only one asking this question! Over the weekend, I saw this post on social media and it made me dig deeper into whether or not a business can deny cash payments.
According to a post by Mississippi Senator, Chad McMahan, he states that "if you are a business owner and you refuse to take cash (legal tender), you are breaking the law". Legal Tender, according to Section 31 U.S.C. 5103 it states that "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". So this means that business have to legally accept your cash correct? The answer is, no they do not!
While Federal notes and coins are in fact "legal tender" there is actually no federal law requiring a private business, person, or organization to take cash according to Board of Governors of the Federal Reserve. Private business's are able to create their own policies when it comes to how they take payments unless there is a law mandating them to do differently.