Legal Question in Business Law in California

is it illegal for a business to refuse cash as payment?


Asked on 6/25/13, 6:28 pm

2 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

The money says "legal tender, for all debts, public and private." I've had court clerks refuse to take cash before. I'm not sure how you would enforce it. I know a lot of people in other countries who would prefer our money.

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Answered on 6/25/13, 6:40 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There is a difference between paying a debt and making a cash purchase. A cash purchase is an "instantaneous" transaction, in which money is exchanged for goods. Whereas cash must be accepted in payment of a pre-existing indebtedness, a merchant can refuse to accept cash if he be so foolish.

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Answered on 6/30/13, 12:54 pm


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