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. If you want to pay for a pack of gum with a £50 note, it’s perfectly legal to turn you down. Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Yes. 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. 23 May 2005 at 8:15PM edited 30 November -1 at 12:00AM in I wanna buy-it or do-it. While cash and coins are legal tender for all debts, there is no federal law that requires businesses to accept them in exchange for goods and services, according to the Federal Reserve’s website. 'Legal tender has a very narrow and technical meaning, which relates to settling debts. ” Martin pointed out that in Scotland only coins are in fact legal tender… You might have heard someone in a shop say: “But it’s legal tender!”. The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. Angus Kidman Updated Jul 22, 2020. Martin said: “The legal tender is interesting. There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. £20 - for any amount But that’s not the case. You don't owe them anything. Is this legal for them to do? “And that’s all it means. £50 notes as a standard policy. “Legal tender has a strict definition. It may be legal tender, but more businesses are snubbing cash. This can be a touchy situation. 5103, entitled "Legal tender," which states: "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." It's because it only creates a hassle for the business unless they are low on small change. If legal currency was refused, a judge can (and most likely will) wipe the dept clean. I went to the store to purchase an item and gave them my last bill, which was torn slightly off the end, and they refused it as payment. The concept of “legal tender” only applies when there is a pre-existing debt. 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. “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. A shop owner can choose what payment they accept. 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 You can … My question is more of one of interest, I'm not likely to go back and harass them for 20 bucks. And as a small business owner, you must accept dollars for your products or services. If you walk into a shop, they can accept or refuse whatever they like. ” He pointed out that in some parts of the country the only thing that is legal tender is, in … If you owe someone some money, they are obliged to accept legal tender for payment of that debt. Ask Finder: Can businesses legally refuse to accept cash? Details in this link. 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. Claim: U.S. Treasury Law Says It Is Unlawful For Businesses To Refuse TO Take Cash Does "legal tender" mean you can always pay with notes and coins? There is a widespread belief that if you give a business "legal tender" — official Australian coins or banknotes — they must accept it as payment. These posts come at a time when some businesses are refusing cash payments due to concerns about coronavirus transmission. Equally, shops can refuse to … 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. Can you refuse legal tender? “Legal tender” is what makes an official currency official. August 4, 2016 7.48pm EDT. Coins are legal tender throughout the United Kingdom for the following amount: £100 - for any amount. Telephone bills can also be paid at New Zealand Post Shops where cash and cards can be used. >> 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. "all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. Let's assume for a moment that you the customer only have $2.00 bills and the store rep. refuses to accept it. £50 - for any amount. 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