GEOINTAnalyst
Well-Known Member
Some customers at cash-free chains find the new policy confusing. They occasionally try to argue that it’s not even legal, pointing to the line on paper money that reads, “This note is legal tender for all debts public and private.” And those aren’t just empty words. There’s a federal law, 31 USC Section 5103, to back it up.
However, the key word in that law is “debts.” Technically, you only owe a debt if you’ve already made a purchase and haven’t paid for it yet. But if you go into a convenience store to buy a cup of coffee, you haven’t bought the coffee until you’ve paid for it.
That means you don’t owe a debt, and it’s up to the store to decide whether to accept your cash as a form of payment.
The Treasury Department confirms this interpretation of the law on its website, saying, “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.”
That means buses can require exact change, convenience stores can refuse large bills, and eateries like Taco Bell can refuse to accept cash altogether.
However, if you’ve already bought something — for instance, if you’ve pumped yourself a tankful of gas and gone into the shop to pay for it — that’s a different situation. Then, the owner must accept your cash because you’re technically paying a debt.
If you think about it, there are already multiple situations in which it’s not possible to use paper money. For example, people seldom complain about parking meters that only take small change or tokens or online sellers who only accept credit card payments.
Likewise, there was little outcry when most airlines stopped accepting cash for in-flight purchases of food and drinks around 2010. (One man tried suing Continental Airlines over the policy, but as The Consumerist reports, his case was thrown out of court.)
Really, the only reason cash-free stores and restaurants seem odd to most shoppers is that we’re not used to them. But if this trend catches on more widely, attitudes will change along with store policies. Before long, cash-free stores could seem normal unless something happens to halt the trend.
So there you go the difference between a "Debt" or rendering payment
However, the key word in that law is “debts.” Technically, you only owe a debt if you’ve already made a purchase and haven’t paid for it yet. But if you go into a convenience store to buy a cup of coffee, you haven’t bought the coffee until you’ve paid for it.
That means you don’t owe a debt, and it’s up to the store to decide whether to accept your cash as a form of payment.
The Treasury Department confirms this interpretation of the law on its website, saying, “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.”
That means buses can require exact change, convenience stores can refuse large bills, and eateries like Taco Bell can refuse to accept cash altogether.
However, if you’ve already bought something — for instance, if you’ve pumped yourself a tankful of gas and gone into the shop to pay for it — that’s a different situation. Then, the owner must accept your cash because you’re technically paying a debt.
If you think about it, there are already multiple situations in which it’s not possible to use paper money. For example, people seldom complain about parking meters that only take small change or tokens or online sellers who only accept credit card payments.
Likewise, there was little outcry when most airlines stopped accepting cash for in-flight purchases of food and drinks around 2010. (One man tried suing Continental Airlines over the policy, but as The Consumerist reports, his case was thrown out of court.)
Really, the only reason cash-free stores and restaurants seem odd to most shoppers is that we’re not used to them. But if this trend catches on more widely, attitudes will change along with store policies. Before long, cash-free stores could seem normal unless something happens to halt the trend.
So there you go the difference between a "Debt" or rendering payment