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"Can Businesses Refuse to Accept Cash?"

Episode 99: Play Download

 

Text by Adam Freedman:

 

"Is it Legal for Airlines to Refuse to Accept Cash?

...The short answer is that federal legal tender laws require creditors to accept payment denominated in dollars, but generally do not require businesses to accept any particular form of payment -- such as cash...

 

Cash is King

When we use the term "cash" in the United States, we generally mean coins minted by the US Treasury, and dollar bills, which are actually called "Federal Reserve notes." Some people think that cash is dirty stuff, but I confess to being rather attached to the stuff. So are a lot of people, apparently, because no-cash policies tend to raise a chorus of protests...

 

What is "Legal Tender"?

Oh well. What has people confused is the notion that cash is "legal tender." If you look at a dollar bill -- er, Federal Reserve Note -- in your wallet, you'll see that it says "this note is legal tender for all debts, public and private."

 

"Legal tender" is what makes an official currency official. It means that a creditor must accept federal reserve notes in satisfaction of a debt. 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 Must Accept "Dollars," but Not Cash

...

 

So far, Legal Lad has yet to find a state law that mandates payment in cash. In fact, as we discussed in our earlier episodes, courts in a number of states have dismissed challenges to various no-cash policies. But Fred, if you can find a state that forbids no-cash policies, then you can certainly try to get the airline to accept your cash -- of course, you'll have to wait until the plane is flying over that particular state. On second thought, if you really have a hankering for rubber chicken, soggy sandwiches, and teeny-tiny bottles of chardonnay, play it safe and bring your plastic on-board.

 

Safe travels!"

 

The full text of this podcast is available at the source site listed below

Source: Legal Lad, 21 September 2009

Full post as published by Stark County Law Library Blawg on October 01, 2009 (boomark / email).