Coronavirus: Isn't it illegal for a merchant to refuse a cash payment?

I was in a store today and tried to pay by credit card. My card was declined. I said to the merchant, "I'll have to pay cash." The merchant said, "I'd prefer if you pay by card. Don't you have another card?" I said, "no." So he accepted my cash. But what if a merchant says, "I will not accept cash--only credit card." Isn't it illegal for a merchant to refuse cash? If you look at money it says, "This note is legal tender for all debts, public and private."

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BlueVeins · 22-25

I don't think so. Hotels don't take cash, right?

flipper1966 · M

@BlueVeins Looked it up. You're absolutely right. The law requires that a merchant accept U.S. dollars -- but those U.S. dollars can be electronic payments, not cash.

[quote][b]Can a business refuse cash?
[/b]
Federal law makes U.S. currency a legal tender for paying debts. As a small business owner, you must accept dollars for your products or services. This doesn’t mean paper notes. You can accept electronic dollars as payment.

Private businesses can create their own payment policies, including ones that restrict cash payments. You can say that customers must pay with a credit card, check, or money order. You can also ban large bills at your business.

Bottom line—you can accept payments in whatever form you want. Here’s why:

No federal law requires businesses to accept cash.
You only need to accept cash when someone owes a debt. If the customer pays before you provide the product or service, you don’t have to accept cash.
You need to establish a cash payment policy before a transaction occurs. You can’t change your policy mid-transaction or refuse someone’s paper bills when you say that you accept cash. As long as you tell customers upfront that you don’t accept cash, you can refuse cash payments.[/quote]