Can SC businesses refuse cash payments? Here’s what the law says

In the digital age, it’s not uncommon for customers to go cashless, paying with a card or even a smartphone.

But can businesses do the same?

What federal law says about cashless payments

Federal law is clear that coins and currency are legal tender for all debts, dues, public charges and taxes, but the federal government doesn’t require businesses to accept cash payments.

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

What federal state law says about cashless payments

Some states, like New Jersey, have enacted laws requiring most stores to accept cash payments, with proponents arguing cashless systems discriminate against people without access to consumer credit.

Indeed, a Pew Research Center report in 2022 found that lower-income Americans were more reliant on cash than those who are more affluent. According to the report, three in 10 Americans with household incomes below $30,000 a year said they used cash for all or almost all of their purchases.

But others believe the decision to go cashless should be left to the market.

“Frankly, if they’re only accepting cash, or vice versa — they’re only accepting credit cards, the market will kind of dictate that, whether or not that works for them,” said Myrtle Beach Area Chamber of Commerce President Jimmy Gray. “If they start to lose business, something tells me they’ll change it up, and they’ll accept both.”

South Carolina hasn’t adopted a cash requirement law, though that could change.

In 2023, legislators introduced House Bill 3694, which would require any establishment holding a retail license to do business in South Carolina to accept cash payments. The bill was referred to the Committee on Labor, Commerce and Industry, but hasn’t progressed since January 2023.

What local law says about cashless payments

A South Carolina Association of Counties spokesperson confirmed that counties could enact local ordinances to require businesses to accept cash payments, but no South Carolina county has put any such rule in place.

The Municipal Association of South Carolina didn’t respond to questions about whether any South Carolina cities and towns had local rules requiring cash payments, but if the practice exists, it isn’t common.

“There are certain businesses that do cash only … Our position would just be that we support maximum flexibility for the place of business to be able to do business as they see fit,” Gray said.