# Are there minimum amounts of coinage that shops and banks have to accept? **URL:** \ **Category:** Factual Questions\ **Created:** [June 29, 2009, 6:01pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367 "2009-06-29T18:01:41Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![Bisected8](https://avatars.discourse-cdn.com/v4/letter/b/a4c791/32.png) [@Bisected8](https://boards.straightdope.com/u/Bisected8)\ **Post date:** [June 29, 2009, 6:01pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/1 "2009-06-29T18:01:41Z")
For most of my life (or the part of it where I’ve had to understand money) I’ve been under the impression that (here in the UK at least) there was a minimum value of change that someone had to accept as payment (more specifically the amount banks print on their money bags and ask you to separate accordingly), and they were able to request it be given in another form. This was re-enforced by stories about smart arses who tried to pay their council tax entirely in pennies having their payment rejected. However, this morning when I was buying some stuff and discovered I’d mysteriously ran out of bank notes (the total cost was £9 something, I had a fiver). The shop assistant claimed that the £4.something worth of 50p and 20p coins was more than they had to accept (according the the banks’ moneybags the maximum is £5 in 10, 20 and 50p coins) and I had to spend about 10 minutes looking for a cash machine before I could claim full ownership of my good and return home to interrogate my brother over the disappearance of my wallet’s contents. So was the shopkeeper being lazy/wrong, or have I been wrong all these years? And while I’m asking, do similar laws exist in other parts of the world? ---
**Author:** ![Doug\_Bowe](https://avatars.discourse-cdn.com/v4/letter/d/df788c/32.png) [@Doug\_Bowe](https://boards.straightdope.com/u/Doug_Bowe)\ **Post date:** [June 29, 2009, 6:08pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/2 "2009-06-29T18:08:54Z")
I don’t know if it’s the law or just store policy, but years ago as a clerk I was told that in taking payment we didn’t have to accept more than 25 cents in pennies. ---
**Author:** ![IAmNotSpartacus](https://avatars.discourse-cdn.com/v4/letter/i/cc9497/32.png) [@IAmNotSpartacus](https://boards.straightdope.com/u/IAmNotSpartacus)\ **Post date:** [June 29, 2009, 6:09pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/3 "2009-06-29T18:09:09Z")
You may want to head over to this [thread](http://boards.straightdope.com/sdmb/showthread.php?t=522650), which discusses essentially the same topic. ---
**Author:** ![Giles](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giles/32/60_2.png) [@Giles](https://boards.straightdope.com/u/Giles)\ **Post date:** [June 29, 2009, 6:10pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/4 "2009-06-29T18:10:55Z")
I don’t think the shopkeeper was obliged to sell the goods for any particular combination of coins. If you’d offered a £5 note and two £2 coins for a £9 item, they could have said, “I don’t like £2 coins,” or something equally stupid, and not be breaking the law. But any normal shopkeeper would be quite happy to take 20 20p coins for a £4 item: it’s all money! ---
**Author:** ![Bisected8](https://avatars.discourse-cdn.com/v4/letter/b/a4c791/32.png) [@Bisected8](https://boards.straightdope.com/u/Bisected8)\ **Post date:** [June 29, 2009, 6:14pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/5 "2009-06-29T18:14:41Z")
> [@IAmNotSpartacus](#): > > You may want to head over to this [thread](http://boards.straightdope.com/sdmb/showthread.php?t=522650), which discusses essentially the same topic. Not really, that’s discussing whether someone can refuse different types of payment. This is related to denominations of currency. In any case it doesn’t answer my question. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [June 29, 2009, 7:09pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/6 "2009-06-29T19:09:09Z")
The point, which is addressed in that other thread, is that a store (or anyone else) can set whatever terms they want for what kind of payment they’ll accept. The only exception is if it’s payment for an already-established debt, in which case they have to accept legal tender. But filling your cart at a grocery store doesn’t establish a debt, so the store can set whatever restrictions they like. It seems that your store has decided to set the restriction that they don’t want to deal with a whole bunch of coins. By the same token, you’ll also often see stores refuse to accept very large denominations (like $100 bills, in the US), because it puts them at more risk of robbery. On the other hand, though, if your electric bill is $400, and you go to the utility’s office with four $100 bills, then you’ve paid your bill and they can’t complain, since $100 bills are legal tender. What precisely counts as legal tender varies from jurisdiction to jurisdiction, and I have no idea what the law is in the UK, but it might be that coins are considered legal tender only up to some limit. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [June 29, 2009, 7:14pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/7 "2009-06-29T19:14:14Z")
One of the [FAQ](http://www.treas.gov/education/faq/currency/legal-tender.shtml#q1) on the US Treasury website says, in part, “Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills.” ---
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [June 29, 2009, 7:17pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/8 "2009-06-29T19:17:32Z")
Seems coins are good for all debts. I had a friend once tell me that he had to pay a $50 traffic fine he thought was bogus. So he got 5,000 pennies and went to pay his bill. He had taken two pennies out of the jar (or whatever he carried it all in). The clerk decided to count all of them, by hand. My friend was prepared for this and had brought a book. The clerk eventually finished counting and told him he was $0.02 short. My friend replied, “Huh? I am sure they are all there. Please count again.” I guess the clerk was not amused and sent him on his way. Above story may be BS…was told over some beers but funny if true. Anyway: > [@](#): > > TITLE 31 \> SUBTITLE IV \> CHAPTER 51 \> SUBCHAPTER I \> § 5103 > > § 5103. Legal tender > > 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. Foreign gold or silver coins are not legal tender for debts. > > SOURCE: [31 U.S. Code § 5103 - Legal tender | U.S. Code | US Law | LII / Legal Information Institute](http://www.law.cornell.edu/uscode/31/5103.html) ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [June 29, 2009, 8:58pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/9 "2009-06-29T20:58:19Z")
> [@](#): > > Seems coins are good for all debts. I had a friend once tell me that he had to pay a $50 traffic fine he thought was bogus. So he got 5,000 pennies and went to pay his bill. He had taken two pennies out of the jar (or whatever he carried it all in). The clerk decided to count all of them, by hand. My friend was prepared for this and had brought a book. The clerk eventually finished counting and told him he was $0.02 short. My friend replied, “Huh? I am sure they are all there. Please count again.” I guess the clerk was not amused and sent him on his way. Reminds me of some hippie friends of my mother’s, who decided to pay their entire income tax in $1 bills, and wrote on each and every bill what they wanted that dollar to go to. ---
**Author:** ![Bisected8](https://avatars.discourse-cdn.com/v4/letter/b/a4c791/32.png) [@Bisected8](https://boards.straightdope.com/u/Bisected8)\ **Post date:** [June 29, 2009, 9:24pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/10 "2009-06-29T21:24:17Z")
That’s all well and good guys. But as I noted, I’m not in the US. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [June 29, 2009, 9:38pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/11 "2009-06-29T21:38:30Z")
Yes, but you did ask, “And while I’m asking, do similar laws exist in other parts of the world?” So some of us were replying to that. ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [June 29, 2009, 9:47pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/12 "2009-06-29T21:47:39Z")
It’s called the law of supply and demand. If they won’t accept payment in coins, there’s likely another shop just down the street that will be glad of your business. ---
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [June 29, 2009, 9:53pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/13 "2009-06-29T21:53:39Z")
> [@Bisected8](#): > > That’s all well and good guys. But as I noted, I’m not in the US. Not sure if this answers it. Not really following it myself but FWIW: > [@](#): > > Legal tender of Canadian coinage is governed by the Currency Act which sets out limits of: > > ``` > * 40 dollars if the denomination is 2 dollars or greater but does not exceed 10 dollars; > * 25 dollars if the denomination is 1 dollar; > * 10 dollars if the denomination is 10 cents or greater, but less than 1 dollar; > * 5 dollars if the denomination is 5 cents; > * 25 cents if the denomination is 1 cent. > > ``` > > Retailers in Canada may refuse bank notes without breaking the law. According to legal guidelines, the method of payment has to be mutually agreed upon by the parties involved with the transactions. For example, convenience stores may refuse $100 bank notes if they feel that would put them at risk of being counterfeit victims; however, official policy suggests that the retailers should evaluate the impact of that approach. In the case that no mutually acceptable form of payment can be found for the tender, the parties involved should seek legal advice. > > SOURCE: [Legal tender - Wikipedia](http://en.wikipedia.org/wiki/Legal_tender) EDIT: Whoops…UK? Same link as above: > [@](#): > > In the United Kingdom, only coins valued 1 pound Sterling, 2 pounds, and 5 pounds Sterling are legal tender in unlimited amounts throughout the territory of the United Kingdom. In accordance with the Coinage Act 1971,[7] gold sovereigns are also legal tender for any amount. The face values of sovereigns are 50p, £1, £2 and £5; their value in material worth is much higher. The United Kingdom legislation that introduced the 1 pound coin left no United Kingdom-wide legal tender banknote. > > Currently, 20 pence pieces, 25 pence coins and 50 pence pieces are legal tender in amounts up to 10 pounds; 5 pence pieces and 10 pence pieces are legal tender in amounts up to 5 pounds; and 1 penny pieces and 2 pence pieces are legal tender in amounts up to 20 pence.[8] ---
**Author:** ![Kimmy\_Gibbler](https://avatars.discourse-cdn.com/v4/letter/k/bbe5ce/32.png) [@Kimmy\_Gibbler](https://boards.straightdope.com/u/Kimmy_Gibbler)\ **Post date:** [June 29, 2009, 9:59pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/14 "2009-06-29T21:59:59Z")
> [@t-bonham@scc.net](#): > > It’s called the law of supply and demand. > > If they won’t accept payment in coins, there’s likely another shop just down the street that will be glad of your business. This is also a very good point. Unfortunately, it will be overlooked while the others are parsing the _Legal Tender Cases_ from the reign of Ramesses XXXIV. ---
**Author:** ![DSYoungEsq](https://avatars.discourse-cdn.com/v4/letter/d/c6cbf5/32.png) [@DSYoungEsq](https://boards.straightdope.com/u/DSYoungEsq)\ **Post date:** [June 29, 2009, 10:41pm UTC](https://boards.straightdope.com/t/are-there-minimum-amounts-of-coinage-that-shops-and-banks-have-to-accept/501367/15 "2009-06-29T22:41:06Z")
> [@Kimmy\_Gibbler](#): > > This is also a very good point. Unfortunately, it will be overlooked while the others are parsing the _Legal Tender Cases_ from the reign of Ramesses XXXIV. It was Ramesses XXXVI. Jus’ sayin’… 😛