Is it legal for IL businesses to refuse cash or coin as payment? What the law says
While cash-only businesses are relatively common, especially those that deal in smaller transactions, can Illinois businesses legally reject cash payments and require a debit or credit card for purchases?
Cash is considered “legal tender” by the U.S. Federal Reserve, but federal law does not mandate private businesses, individuals or organizations to accept bills or coins for payment.
“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 website says.
Some states, such as New Jersey and Massachusetts, have enacted legislation requiring businesses to accept cash payments in at least some circumstances, and some city codes have similar regulations.
Americans with lower incomes are more reliant on cash than wealthier residents, according to a 2022 report from the Pew Research Center, and obtaining a debit or credit card may require identification, proof of address and other requirements that aren’t accessible to everyone.
But what does Illinois state law say about the issue? Here’s what to know.
Can Illinois businesses go cashless?
Businesses in Illinois are allowed to accept payments by card only if they choose, according to Illinois Legal Aid Online Deputy Director Gwen Daniels.
“In Illinois, businesses can refuse cash payments,” Daniels said in a July 2 interview with the News-Democrat.
Illinois lawmakers have proposed bills to change this, primarily to require businesses to accept cash payments for purchases under $2,000, Daniels continued, but none of those bills have become law.
One recent effort, House Bill 3281, was filed in 2023 and died in January. This bill would have amended the Consumer Fraud and Deceptive Business Practices Act to require businesses to accept in-person payments in cash for purchases less than $2,000 and ban businesses from being cashless or charging customers paying in cash more than those paying with cards. Some exceptions applied.
Another previous bill, Senate Bill 1979, aimed to enact similar requirements for businesses to accept cash payments. The senate bill also died in January.
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