Do retailers have to simply accept money by regulation as specialists make clear what ‘authorized tender’ really means

EXCLUSIVE The Daily Star’s resident ‘why are people so angry all the time?’ expert has delved into why people are so annoyed about brands refusing to take cash in-store any longer

Brits are raging over the news that several major high street names have stopped taking cash – but can they legally do that? Well, in short, yes. But don’t stop reading otherwise this entire feature would be pointless…and it’s not, it’s interesting.

Anyway, many have been throwing around the term “legal tender” as a way to prove that stores have to take cash whether they want to or not.

It had also been previously claimed – on social media – that it was illegal for stores to refuse cash alongside side the “legal tender” argument.

Among those causing the anger of shoppers is restaurant chain Zizzi, bakery giants Gail’s Bakery, Asian-inspired chain Itsu and even some branches of Tesco’s own-branded cafes.

However, much to the annoyance of many, the brands are well within their rights to refuse cash no matter how many times you stand there and shout “LEGAL TENDER” at the poor, underpaid staff.

According to the Bank of England, the tern “legal tender” doesn’t really mean much in the real world, however.

They claim: “Legal tender has a narrow technical meaning that will rarely come up in everyday life. The law ensures that if you offer to fully pay off a debt to someone in a form that is considered legal tender – and there is no contract specifying another form of payment – that person cannot sue you for failing to repay.

“(What is counted as legal tender) varies throughout the UK. In England and Wales, it is Royal Mint coins and Bank of England notes. In Scotland and Northern Ireland, it is only Royal Mint coins and not banknotes.

“There are also some restrictions when using small coins. For example, 1p and 2p coins only count as legal tender for any amount up to 20p.

And 5p and 10p coins only count for any amount up to £5. But £1 and £2 coins count as legal tender for any amount. Many common and safe payment methods such as cheques, debit cards and contactless are not legal tender. But again, this will have little to no effect on your everyday life.”

However, the Royal Mint claims that even using legal tender has issues, as anyone still taking cash does not – by law – have to give you change.

And key to this entire debate is where they state that the term “legal tender “ does not mean that any ordinary transaction has to take place in “legal tender.”

A Government response to this from 2023 further pushed the point that store bosses can do what they want in this regard, stating: “The government does not plan to mandate cash acceptance.

“While the government recognises the ability to transact in cash remains important to millions of people across the UK, particularly those in vulnerable groups, it remains the choice of individual businesses as to whether to accept or decline any form of payment, including cash or card.

“This may be based on factors such as customer preference and cost.”

So now you know.

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