If you’ve ever tried to pay with cash only to be told, “We don’t accept cash,” you might wonder—is that even legal? After all, U.S. currency clearly states it’s “valid for all debts, public and private.”
A recent AskDale question highlights this confusion:
"How can a business not accept cash when the money literally says it’s valid for all debts, public and private? Doesn’t that mean I can use cash anywhere?”
The short answer? Private businesses are not required by federal law to accept cash. However, some states and cities have passed laws making it illegal to refuse cash payments. Let’s break it down.
Why Some Businesses Don’t Accept Cash
In today’s digital world, more businesses are choosing to go cashless, especially in large cities. Here’s why:
✔ Security – Cash handling can increase the risk of theft.
✔ Efficiency – Card and mobile payments are faster and reduce errors.
✔ Health Concerns – Especially after COVID-19, some businesses prefer contactless payments.
✔ Tracking Sales – Digital transactions leave a paper trail, reducing fraud and tax evasion.
But does this mean they can legally refuse your cash? It depends.
Where Businesses MUST Accept Cash
While federal law doesn’t require private businesses to accept cash, some states and cities have passed laws mandating that businesses cannot refuse cash payments.
As of now, these 12 states and Washington D.C. require businesses to accept cash:
- California
- Colorado
- Connecticut
- Delaware
- Illinois
- Maine
- Massachusetts
- New Jersey
- New York
- Oregon
- Pennsylvania
- Rhode Island
- Washington, D.C.
If you’re in one of these locations, you have the legal right to pay with cash at any retail business.
Exceptions to Cash Payment Laws
Even in states that require cash acceptance, some businesses are still allowed to refuse cash in certain cases. For example:
- Online businesses (e.g., Amazon) aren’t required to accept cash
- Membership-based businesses (e.g., Costco, private clubs) may set their own policies
- High-risk industries like airlines, hotels, and car rentals may restrict cash payments for security reasons
If you’re unsure whether a business accepts cash, it’s always a good idea to check their policy before making a purchase.
Final Thoughts: Know Your Rights Before Paying
While businesses are generally allowed to refuse cash, if you’re in a state or city where cash refusal is illegal, you can challenge the policy or report the business.
What do you think? Should all businesses be required to accept cash? Let us know in the comments!
