An increasing number of businesses have found themselves cashless amid the COVID-19 pandemic, generating online criticism and misrepresentations about the legality of digital transactions. Cashless works for some retailers because it allows them to process payments faster, Harvard`s Santana said. Atlanta`s Mercedes-Benz Stadium, for example, stopped accepting cash in 2019 to minimize lines at dealership stands. Some companies also prefer cash because it saves them money on credit card processing fees. As states legalize marijuana, more and more businesses and policymakers are facing a banking problem. With so much money flowing through their hands, it`s no secret that businesses, large and small, are reluctant to accept cash during COVID-19. If you don`t want to accept cash into your business, post your policy and make sure it`s visible to your customers. So, is it legal for businesses not to accept cash during COVID-19? The short answer: Yes. As mentioned earlier, there is no federal law requiring private companies to accept cash as payment.

Ultimately, it`s up to the company to decide whether or not to accept cash payments (unless there`s a state or local law that says otherwise). Thus. What exactly does this mean and what does it have to do with accepting cash? Simply put, this means that U.S. currency is accepted as legal tender and money has the same value throughout the country. As a small business owner, you can apply a payment policy that meets your needs. They can accept cash, but have some restrictions (such as no bills over $20). Or you can refuse money. Before making any decision, check the pros and cons of accepting cash below. If you don`t accept cash from customers, offer a variety of payment options so customers can easily pay you cashless.

In response to the pandemic, the Centers for Disease Control and Prevention has issued guidelines encouraging retailers to use contactless payment options, but not everyone is happy with the recent increase in electronic payments. Some social media users claim that it is illegal to refuse cash payments. «Wal-Mart just told me they don`t accept cash. Asked for the director who told me the same thing. She had her boss and a police officer taken,» reads another Facebook post on Aug. 8. «I showed them all a letter from a lawyer saying – without `legal tender` in the US – that the debt is considered paid. No legal recourse. You may have noticed that some small businesses in your area have posted signs indicating that they do not accept cash. Or maybe you`re thinking of going cashless yourself.

Either way, you`re probably wondering: Is it legal not to accept cash? Well, let`s find out. Yes. The first series (€5 to €500) of euro banknotes was issued in 2002 and is still legal tender. Between 2013 and 2019, the ECB and the national central banks of the Eurosystem introduced a second series (also known as the Europa series) of euro banknotes with a value of €5 to €200 (the €500 banknote will no longer be issued). The different denominations of the first and second series have the same value. «No retail business offering goods and services for sale may discriminate against a cash buyer by requiring a buyer to use the credit to purchase those goods and services. All of these retail establishments must accept legal tender when offered as payment by the purchaser,» the Massachusetts Legislature website states. To protect your business from counterfeit bank notes, avoid accepting larger bills (such as $50 or $100). Large bills are the most common banknotes that are counterfeited. Section 31 of United States Code 5103, entitled «Legal tender,» states: «The coins and coins of the United States [including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks] are legal tender for all debts, public rights, taxes, and duties.» This law means that all of the above U.S.

funds constitute a valid and legal offer to pay the debt when offered to a creditor. The Treasury Department`s website also states that while all U.S. funds identified as «legal tender» constitute a valid legal offer to pay the debt, there is no federal law requiring private companies to accept cash or coins as payment. This also means that liquidity is legal tender for all public and private debt. Federal law makes U.S. currency legal tender for debt repayment. And as a small business owner, you have to accept dollars for your products or services. However, this does not mean that it has to be paper dollars. You can also accept electronic dollars as payment.

The company resumed accepting money last month, Littleton said. «It was in no way politically motivated,» she added, noting that the company had not taken a position on the Colorado law. To avoid unknowingly accepting counterfeit banknotes, you should create a policy on the type of invoices your company accepts. For example, you only accept $1, $5, $10 and $20 bills. DENVER — After a voter called Colorado Rep. Alex Valdez last spring and complained that some local businesses weren`t accepting cash, the Denver Democrat noticed cashless businesses everywhere, from restaurants to his local coffee shop. Are you considering accepting cash payments from your customers? Big! Keep these three things in mind. Nowadays, people put money aside and pay with plastic. In fact, one study found that 80% of people prefer card payments to cash. But just because plastic dominates doesn`t mean cash is obsolete. Many people still prefer to pay in cash. And in some cases, it may be easier to handle cash than cards.

But can a company refuse cash? Is it legal to only accept credit cards and other cashless payment options? Read on to get the scoop. These and other practical tips are the type of help companies can get as part of a package of customized and budgeted legal work when you hire Nexsen Pruet to provide gc360 general counsel services. If you have any further questions or would like advice on payment policies in your area, please contact Yolanda Davis. Leading national chains that have stopped accepting cash in recent years — such as Amazon Go stores and fast, casual salad chain Sweetgreen — have changed their policies after being criticized for excluding shoppers who rely on cash. Many businesses are refusing cash during COVID-19 as a precautionary measure to protect both employees and customers. And some companies don`t accept cash because of the nationwide coin shortage. «U.S. coins and currencies (including Federal Reserve notes and circulation notes of Federal Reserve banks and domestic banks) are legal tender for all debts, public charges, taxes, and duties,» the Board of Governors of the Federal Reserve said, citing 31 U.S.C. § 5103. which defines «legal tender». «If you`re a small business owner, it`s up to you how you want to accept payment,» Colorado Republican Sen. Rob Woodward told the Colorado Sun last month.

«For some, they might want chicken, eggs or credit cards, what do you have.» As a business owner, you must keep records of every transaction, including cash sales. When accepting paper invoices from customers, treat cash transactions like any other type of transaction. Make a general ledger entry in your books for every cash sale you have. Write down what the sale was for, the date of the transaction and the amount.