# is it legal for a merchant to refuse cash? **URL:** \ **Category:** Factual Questions\ **Created:** [June 10, 2010, 2:08pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649 "2010-06-10T14:08:32Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Generic\_Userid](https://avatars.discourse-cdn.com/v4/letter/g/9fc29f/32.png) [@Generic\_Userid](https://boards.straightdope.com/u/Generic_Userid)\ **Post date:** [June 10, 2010, 2:08pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/1 "2010-06-10T14:08:32Z")
I know, y’all ain’t lawyers, and this ain’t a legal advice board, but without actually spending $$ hiring a lawyer, I don’t know any other way to find this answer … Note that by “cash” I don’t mean a bag of nickels, I mean paper money in reasonable denominations (e.g., using five $20 bills to buy something costing $100, or five $100 bills to buy something costing $500). This question arose when I read a news report that Apple, via its brick-n-mortar Apple Stores, refused to sell the new iPad to people trying to pay with cash. Simply based on the legend & concept that cash is “legal tender for all debts public and private”, shouldn’t that be illegal? ---
**Author:** ![Folly](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/folly/32/3219_2.png) [@Folly](https://boards.straightdope.com/u/Folly)\ **Post date:** [June 10, 2010, 2:14pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/2 "2010-06-10T14:14:22Z")
The question comes up every now and again and basically the answer is that merchants can demand anything they want in payment. If they want payment in gerbils, they will lose customers but nothing is stopping them. If they haven’t given you the iPod yet, then where is the debt? ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [June 10, 2010, 2:14pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/3 "2010-06-10T14:14:38Z")
[Previous Thread](http://boards.straightdope.com/sdmb/showthread.php?t=549239&highlight=cash+legal+tender) Basically merchants are under no obligation to sell you anything, so it’s not a debt. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [June 10, 2010, 2:15pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/4 "2010-06-10T14:15:02Z")
It seems to be so. Here’s an [article](http://legallad.quickanddirtytips.com/legal-currency-limitation.aspx) discussing Apple refusing to sell iPhones for cash. > [@](#): > > These cases support the proposition that the Legal Tender Statute does not operate to force merchants to accept cash payments. Under the reasonableness standard that the New York and Texas courts used, Apple would argue that their new policy is reasonably designed to protect their intellectual property and to protect the exclusive license they have with AT&T as the service provider. A court reviewing this would likely agree with Apple. If a court followed the Virginia court, it would not even look into reasonableness, and simply note that the policy does not require customers to pay with foreign currency, and is thus legal. > > … > > Overall, Apple’s policy might seem intrusive and annoying, but does not seem illegal. The remedy here, as is often the remedy in the world of capitalism, is to refuse to patronize Apple. ---
**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 10, 2010, 2:15pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/5 "2010-06-10T14:15:23Z")
IANAL, but I think it’s legal. Note that at no time during the purchase of an iPad do you have a debt to Apple, so “debts public and private” doesn’t come into it. Another example of a merchant refusing to accept cash is the airlines – specifically United – selling snack boxes on board the plane, and only accepting credit cards, presumably because having the flight attendants handling cash would create problems. ---
**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 10, 2010, 2:15pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/6 "2010-06-10T14:15:31Z")
Also, see [this FAQ](http://www.ustreas.gov/education/faq/currency/legal-tender.shtml) from the US Treasury, which says that merchants are free to decline to accept cash. ---
**Author:** ![FatBaldGuy](https://avatars.discourse-cdn.com/v4/letter/f/ecd19e/32.png) [@FatBaldGuy](https://boards.straightdope.com/u/FatBaldGuy)\ **Post date:** [June 10, 2010, 2:15pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/7 "2010-06-10T14:15:31Z")
We have covered this before, but I’m too lazy to look up the past threads. The bottom line is that at the point of sale in a store, there is no debt involved. The merchant is offering an item for sale, and the purchaser is offering to buy it. At that point, the merchant may require payment in any form he chooses, whether that be cash, credit/debit cards only, or shiny pebbles from the stream bed. Only if you leave the store with the merchandise and an agreement to pay for it at some later time does the concept of “debt” enter the transaction. ETA: Wow. Four posts snuck in while I was typing. ---
**Author:** ![Freudian\_Slit](https://avatars.discourse-cdn.com/v4/letter/f/5daacb/32.png) [@Freudian\_Slit](https://boards.straightdope.com/u/Freudian_Slit)\ **Post date:** [June 10, 2010, 2:25pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/8 "2010-06-10T14:25:57Z")
What’s their rationale for not taking cash? ---
**Author:** ![Folly](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/folly/32/3219_2.png) [@Folly](https://boards.straightdope.com/u/Folly)\ **Post date:** [June 10, 2010, 2:29pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/9 "2010-06-10T14:29:02Z")
They don’t want people buying lots of them, breaking the protection (jailbreaking), and then reselling them. ---
**Author:** ![Acsenray](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/acsenray/32/4519_2.png) [@Acsenray](https://boards.straightdope.com/u/Acsenray)\ **Post date:** [June 10, 2010, 2:43pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/10 "2010-06-10T14:43:43Z")
“Legal tender” means that the currency printed and minted by the government _can_ be used for transactions. There is no law that says it must be accepted. A merchant can specify whatever medium of exchange it chooses, whether cash or plastic or cowrie shells. _Wow. Nine in before I can type three sentences._ ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [June 10, 2010, 2:57pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/11 "2010-06-10T14:57:46Z")
There’s also the counterfeit concerns - there are few businesses here still taking $100 bills (and I think fifties are being turned down, too). We got a $100 bill from Wal\*Mart one day for cash back, and we were starting to think we’d have to go to a bank to be able to use that stupid thing. Safeway grudgingly accepted it (after the manager was called over). ---
**Author:** ![Freudian\_Slit](https://avatars.discourse-cdn.com/v4/letter/f/5daacb/32.png) [@Freudian\_Slit](https://boards.straightdope.com/u/Freudian_Slit)\ **Post date:** [June 10, 2010, 3:08pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/12 "2010-06-10T15:08:10Z")
> [@Folly](#): > > They don’t want people buying lots of them, breaking the protection (jailbreaking), and then reselling them. But couldn’t they do that with cards? ---
**Author:** ![ChrisBooth12](https://avatars.discourse-cdn.com/v4/letter/c/e95f7d/32.png) [@ChrisBooth12](https://boards.straightdope.com/u/ChrisBooth12)\ **Post date:** [June 10, 2010, 3:12pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/13 "2010-06-10T15:12:23Z")
> [@Giles](#): > > IANAL, but I think it’s legal. Note that at no time during the purchase of an iPad do you have a debt to Apple, so “debts public and private” doesn’t come into it. Another example of a merchant refusing to accept cash is the airlines – specifically United – selling snack boxes on board the plane, and only accepting credit cards, presumably because having the flight attendants handling cash would create problems. Also if you hand them a bad card they won’t know till they land and you will be long gone! ---
**Author:** ![prettydorky](https://avatars.discourse-cdn.com/v4/letter/p/f04885/32.png) [@prettydorky](https://boards.straightdope.com/u/prettydorky)\ **Post date:** [June 10, 2010, 3:16pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/14 "2010-06-10T15:16:02Z")
> [@Freudian\_Slit](#): > > But couldn’t they do that with cards? yeah, they could, but your card has your name, address, child’s kindergarten teacher, and blood type all tied to it. ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [June 10, 2010, 3:17pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/15 "2010-06-10T15:17:31Z")
> [@Freudian\_Slit](#): > > But couldn’t they do that with cards? Paper trail. Unless the card is stolen. ---
**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\ **Post date:** [June 10, 2010, 3:17pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/16 "2010-06-10T15:17:45Z")
> [@Freudian\_Slit](#): > > But couldn’t they do that with cards? They only allow a few ipads to be sold to any specific credit card. This makes it harder for some guy to buy 50 iPads and do things that Apple doesn’t like. ---
**Author:** ![SmithCommaJohn](https://avatars.discourse-cdn.com/v4/letter/s/ecd19e/32.png) [@SmithCommaJohn](https://boards.straightdope.com/u/SmithCommaJohn)\ **Post date:** [June 10, 2010, 3:31pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/17 "2010-06-10T15:31:56Z")
It’s perfectly legal, as far as I know. Basically, the “legal tender” notice on cash simply means that, if a vendor accepts it as payment for a debt, they can’t later sue you for non-payment. It doesn’t mean they have to accept it, though. ---
**Author:** ![The\_Flying\_Dutchman](https://avatars.discourse-cdn.com/v4/letter/t/9fc348/32.png) [@The\_Flying\_Dutchman](https://boards.straightdope.com/u/The_Flying_Dutchman)\ **Post date:** [June 10, 2010, 3:33pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/18 "2010-06-10T15:33:04Z")
Here in Canada, back in the early 60s, I learned of the concept of legal tender which as I understood it meant that there was a limit to how many pennies, nickels ,dimes, and quarters that a person or business must accept in return for goods and services. This was significant to me at the time as a paper boy when collecting every Friday on my paper route as occasionally I was paid in full for a weekly service with pennies in full. I accepted anyway. ---
**Author:** ![Freudian\_Slit](https://avatars.discourse-cdn.com/v4/letter/f/5daacb/32.png) [@Freudian\_Slit](https://boards.straightdope.com/u/Freudian_Slit)\ **Post date:** [June 10, 2010, 3:38pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/19 "2010-06-10T15:38:34Z")
> [@gazpacho](#): > > They only allow a few ipads to be sold to any specific credit card. This makes it harder for some guy to buy 50 iPads and do things that Apple doesn’t like. Okay. But if they did sell you let’s say two iPads on a card and then you went and sold them for cash to someone else, how would they know about it? ---
**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\ **Post date:** [June 10, 2010, 3:44pm UTC](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649/20 "2010-06-10T15:44:04Z")
> [@Freudian\_Slit](#): > > Okay. But if they did sell you let’s say two iPads on a card and then you went and sold them for cash to someone else, how would they know about it? They may or they may not. The point is not to catch every transaction that Steve doesn’t like. But to limit them. [Next page](https://boards.straightdope.com/t/is-it-legal-for-a-merchant-to-refuse-cash/542649.md?page=2)