Can California stores refuse to take cash? What state, local laws say

When was the last time you bought something with dollar bills and a few loose coins?

Given the popularity of paying with debit cards, credit cards and smartphones, carrying cash can feel like a thing of the past for some.

More than a third of Americans have gone completely cashless, according to a 2022 study by Pew Research Center.

About 41% of U.S. adults surveyed said that none of their purchases in a typical week were made with cash, while 44% used cash for some of their shopping.

Cash accounted for 18% of consumer payments in 2023, a Federal Reserve Bank of San Francisco report found.

Are California stores required to accept cash payments? What happens if you want to pay for your meal or a new pair of shoes with physical money?

Here’s what the law says:

Are businesses required to accept cash in the US?

While cash is considered “legal tender” in the United States, no federal law mandates that “a private business, person, or an organization must accept currency as payment, ” according to the U.S. Federal Reserve.

“Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise,” the Federal Reserve said on its websites.

Some states, such as New Jersey and Massachusetts, have enacted legislation requiring businesses to accept cash payments under some circumstances, and many cities across the nation have enacted similar regulations.

Can stores refuse to take cash under California law?

Under California law, stores and other businesses aren’t required to take cash payments.

However, there have been efforts in the Golden State to protect people who want to pay with bills and coins.

California State Sen. Jerry Hill, D-Mateo, introduced a bill in 2020 that would have required all brick-and-mortar businesses in California to accept cash.

Supporters argued that cashless stores were discriminating against lower income people without access to other forms of payment, CBS News reported at the time

Although Senate Bill 926 was amended in the Senate, it didn’t advance further, according to legislative records.

San Francisco, Los Angeles ban cashless businesses

In 2019, the San Francisco Board of Supervisors unanimously approved a ban on cashless businesses in an effort to keep its economy “inclusionary and accessible to everyone.”

It seeks to “ensure that all city residents — including those who lack access to other forms of payment — are able to participate in the city’s economic life by paying cash for goods and many services,” the board said its website.

Under the ordinance, repeat violations are considered misdemeanors punishable by a fine of up to $1,000 or up to a year in county jail.

Los Angeles city leaders proposed a ban on cashless businesses in 2024, according to KTLA.

The Newport Beach City Council passed an ordinance in 2024 requiring brick-and-mortar businesses to accept cash for the purchase of most consumer goods and services.

Berkeley also has a similar ordinance for some businesses, which was passed in 2019, according to city records.