Can a business refuse cash?

Quick insights

• Private businesses in most parts of the United States can refuse to accept cash for the sale of various goods and services.
• It’s legal for a business to refuse cash unless a state or city law says otherwise, which is true in several places in the country.
• Credit and debit cards are always good to have handy when shopping in case a store does not accept cash.

Maybe you’ve seen it posted on a store’s façade—or all too late at the register when you’re ready to pay—“No Cash Accepted.” Is that even allowed in this day and age? You have perfectly good cash in your hand. Can a business really refuse to take it?

Can stores refuse cash?

In the United States, no federal laws or regulations require a private business to accept cash as payment for goods or services. This holds true even though physical money says “legal tender for all debts public and private.” Stores can make their own policies about payment methods they’ll accept. However, there are some more localized laws that may prohibit a business from refusing cash for payments.

Why are some stores not accepting cash?

Stores might not accept cash for any number of reasons, but the trend of new and improved electronic payment options isn’t a recent development. In America, at least, cash jobs, cash discounts and “getting change for a 20” have been becoming a thing of the past for years.

The more widespread changeover to fewer cash transactions happening around the country may have taken a huge leap in the wake of the recent global pandemic. Even if certain laws weren’t prohibitive, the pandemic still may have convinced many different types of business to avoid cash transactions. Contactless payments have become increasingly commonplace, and the devices used to pay in stores are sleeker than ever. You can even pay for things if you own the right smartwatch now.

Is it legal for a store to refuse cash according to state laws?

Stores in many states can refuse cash payments for goods and services because no federal statute says stores must accept cash. However, certain places have laws that require businesses to do so. As of 2024, some of the states, cities and localities that prohibit a business from refusing cash include Georgia, Colorado, New York City, New Jersey and the District of Columbia.

What to do if a business is refusing cash

Although limited, there are a few possibilities to pay for a transaction if a business does not accept cash. Perhaps the obvious option is using a debit or credit card, and that includes paying with a smartphone’s mobile wallet if you have a card stored there.

Some peer-to-peer payment apps could also be an option to complete a sale at a store. Cashiers at major retailers might reply with a confused look, but small businesses might not. There’s even a possibility your local deli might accept a PayPal payment for your next sandwich order.