Can MS businesses legally refuse cash as payment? Here’s what state law says
As cashless payments increase in the United States, several businesses have started becoming completely cash free, raising concerns for some Americans without bank accounts.
According to federal law, private businesses can choose whether or not to accept cash, but some states — including Massachusetts, New Jersey and Tennessee — have laws preventing businesses from refusing cash as payment, with some exceptions.
But what’s the law for Mississippi businesses? Here’s what you need to know.
Can MS businesses refuse cash payments?
Mississippi doesn’t have any laws preventing businesses from refusing cash payments, so private businesses in the state are legally allowed to do so.
In 2021, Mississippi lawmakers introduced a bill to stop businesses from denying cash payments, but the bill died in committee.
Previously, there’s been confusion around a phrase printed on U.S. currency stating that they are “legal tender for all debts, public charges, taxes, and dues.”
According to the Federal Reserve, this just means that they are a valid offer of payment, but private businesses, people and organizations can deny cash unless there’s a state law against it.
Cashless policies target some MS folks
While going completely cashless can be convenient and helpful with budgeting, it leaves out millions of Americans who don’t have a bank.
In Mississippi, 9.4% of residents are unbanked, according to a 2023 FDIC National Survey of Unbanked and Underbanked Households.
What fueled the cashless shift?
Several things contributed to the cashless shift in America, including the following, the Biloxi Sun Herald reported:
- Technological advances
- Increase in online retail sales
- Pandemic efforts to reduce germ exposure
