can a store refuse legal tender

23 May 2005 at 8:15PM edited 30 November -1 at 12:00AM in I wanna buy-it or do-it. 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. However, it doesn’t mean it has to be paper dollars. Neither is legal tender but shops are happy to accept them as payment for goods or services. 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.” The concept of “legal tender” only applies when there is a pre-existing debt. “Legal tender has a strict definition. It's because it only creates a hassle for the business unless they are low on small change. You don't owe them anything. 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. 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 “And that’s all it means. Equally, shops can refuse to … 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. However, that is not what the law says. 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. If you walk into a shop, they can accept or refuse whatever they like. A shop owner can choose what payment they accept. Businesses can refuse to take cash in most circumstances, according to the Reserve Bank of Australia. 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. But that’s not the case. Typically in a store there never a situation where there is a debt owed to the store by the customer. It means that a creditor must accept federal reserve notes in satisfaction of a debt. Is this legal for them to do? 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. 30 replies 28.9K views isasmurf Forumite. “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. 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. £50 - for any amount. Can you refuse legal tender? And as a small business owner, you must accept dollars for your products or services. "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!" £20 - for any amount Most people think it means the shop has to accept the payment form. Ask Finder: Can businesses legally refuse to accept cash? 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. 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. It is illegal to refuse legal tender for a debt. 'Refusal to accept payment in legal tender banknotes and coins is not unlawful,' it states. Legal tender has a strict definition. 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. 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. Federal law makes U.S. currency a legal tender for paying debts. £50 notes as a standard policy. These posts come at a time when some businesses are refusing cash payments due to concerns about coronavirus transmission. Even though it is legal currency, ... they can all be tracked. It may be legal tender, but more businesses are snubbing cash. stores can refuse anyones business or money. “Legal tender” is what makes an official currency official. 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. 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. If you want to pay for a pack of gum with a £50 note, it’s perfectly legal to turn you down. Claim: U.S. Treasury Law Says It Is Unlawful For Businesses To Refuse TO Take Cash What does legal tender mean? >> 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. Let's assume for a moment that you the customer only have $2.00 bills and the store rep. refuses to accept it. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. The posts further claim that when cash is turned down, the debt is legally recognized as paid. Shiny beads if they did n't wish to accept legal tender, but more are. 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