Is There a Law That Requires All American Businesses To Accept Legal Tender as Payment?
Since the outbreak of COVID-19, Business owners in America have been observing safety measures to protect themselves. It is safe to say, avoiding taking cash in exchange for goods and services is one of the strategies employed to prevent transmission via the contact route. However, in a Facebook post by Senator Chad McMahan, he claimed that all business owners refusing the exchange of goods and services for cash are violating the law. This post has gone viral and has left some questions to ponder; is there a law that backs this claim up? Is it mandatory for businesses to accept legal tender as payment?
As stated in Section 31, U.S.C. 5103, of the law of Federal Reserve System, ‘the coins and currencies of the United States are applicable in the payment of any form of debt, public charges, dues, and taxes’. This law reinforces the use of coins and currencies as legal tenders in the United States. However, the section is explicit enough, stating that there are no acts or laws enacted by the congress that mandates private businesses to accept Legal tenders as payment.
Accordingly, American Business owners have the leverage to either accept cash or do otherwise in any case, and they have the full backing of the law on this matter.
So, to answer the question, yes, there is a law, but it doesn’t require or mandate all ‘American Business Owners to Accept Legal Tender as Payment’.