Jennifer Saranow Schultz Hacienda Encantada Resort & Spa in Cabo San Lucas Mexico doesn’t accept cash for purchases on its property.My husband and I recently got back from a nearly cashless vacation.
We flew to Cabo San Lucas from San Francisco on United Airlines, which didn’t accept cash in the cabin and required customers to use credit or debit cards to pay for snacks and alcoholic drinks. Then, the hotel we stayed at, Hacienda Encantada Resort & Spa, also had signs up around the resort about its “no cash for purchases on the premises” policy. (No one stopped us from giving out tips in cash.)
The no-cash policy is fine by me, since I rarely carry cash anymore and tend to use my debit or credit card to pay for everything anyway. Still, the policy seems to be spreading everywhere, from airlines to hotels to
restaurants, so we thought we’d check the laws (if any) on the subject and gather a list of places where our greenbacks have been turned away.
First, as to the question of legality, it appears that no-cash policies are perfectly legal in the United States.
According to the United States Department of the Treasury’s site, there is no federal law requiring that businesses accept currency or coins as payment for goods or services. In fact, according to the government Web site: “Private businesses are free to develop their own policies on whether or not to accept cash unless there is a state law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large-denomination currency (usually notes above $20) as a matter of policy.” And it seems that few state laws mandate accepting payment in cash.
As for the list of places where you can’t use cash, here’s our list below. Please add to it in the comment section below and let us know what you think of the no-cash merchants.
Places That Don’t Accept Cash:
Airlines: Certain flights on United Airlines, American Airlines and others covered in this Los Angeles Times article, which also addresses the legal question as well.
Certain Hotels
Many Rental Car Counters
Certain Restaurants: At least one restaurant in the West Village neighborhood of New York City, according to a September Wall Street Journal law blog post, which also addresses the legal question as well as why a business would want to go cashless. The reason: “Convenience and security.”
Certain Stores: There have been a number of reports of Apple stores initially refusing to take cash for iPads, including this one, this one and this one.