Every week we will break down, debunk and demystify your rights as a shopper in Australia. This week we are looking at retailers who specify what type of payment they want and whether that's legal.
We all know life is getting more expensive, and how important it is to stretch every dollar you make.
That's why each week we'll answer a question surrounding what shoppers are – and aren't – entitled to when dealing with retailers and manufacturers.
MONEY MATTERS: Is it legal for a shop to only accept cash as payment?
It's legal tender!
Hi Stuart,
I read with interest your Money Matters article last week that said it was legal for a business to only accept cash as payment. I was wondering, particularly during COVID-19, whether the opposite was true?
Can a business refuse to accept cash?
Under most circumstances, yes it is legal for a business to refuse to accept cash, although in this writer's opinion that would be a pretty poor business decision.
Basically the same reading of the same laws we looked at last week apply: the provider of the goods or services is "at liberty to set the commercial terms upon which payment will take place before the 'contract' for supply of the goods or services is entered into".
MONEY MATTERS: How to get a refund if you've lost the box
It is not unlawful for a business to ask for card payments only, but they must make that clear (the terms of the "contract") before a service or good is purchased.
The Reserve Bank of Australia says a good example of this is non-human business collection points that stipulate exactly how they want to be paid – like the claw machine at the pub only accepting gold coins.
"For example, some vending machines, parking meters and road toll collection points indicate by signs that they will not accept low denomination coins. Some road toll collection points indicate that they will not accept any cash at all," the bank says.
"If a provider of goods or services specifies other means of payment prior to the contract, then there is usually no obligation for legal tender to be accepted as payment."
MONEY MATTERS: The problem with 'no refund on sale item' signs
"But cash is legal tender! They have to take it!" I hear you say.
There are circumstances in which this is true.
Refusal to accept any legal tender – including coins – in the payment of a debt where no other form of payment has been specified in advance could have legal consequences.
You can read all about commercial terms on the RBA website here, or if you're feeling particularly interested you can pore over the legislation of the Currency Act 1965 here.
READ MORE: Why lettuce and other vegetables are so expensive or not on shelves
The information provided on this website is general in nature only and should not be taken as legal advice. People who need clarification on these matters should obtain appropriate legal advice.
