Each week we will break, deny and demystify your rights as a buyer in Australia. This week we are looking at retailers who specify what type of payment they want and if this is legal.
We all know that life is getting more and more expensive and how important it is to stretch every dollar you earn.
That’s why every week we answer a question about what buyers are and are not entitled to when dealing with retailers and manufacturers.
During the peak of the COVID-19 pandemic, Harris Farm in Westfield Bondi Junction was one of many companies that only accepted “contactless” payment methods. (Supplied)
I read your Money Matters article with interest last week, saying that it was legal for a company to only accept cash as payment. I was wondering, especially during COVID-19, if the opposite was true?
Can a company refuse to accept cash?
In most circumstances, yes, it is legal for a company to refuse to accept cash, although in the opinion of this writer, it would be a rather bad business decision.
Businesses can set payment terms as long as it is clear before providing a good or service. (Fairfax Media via Getty Images)
It is not illegal for a company to request card payments only, but it must be clear (the terms of the “contract”) before purchasing a service or.
The Reserve Bank of Australia says a good example of this is non-human business collection points that stipulate exactly how they want to be paid, such as the pub’s claw machine that only accepts gold coins.
“For example, some vending machines, parking meters and road toll collection points indicate by signs that they will not accept low denomination coins. Some road toll collection points indicate that they will not accept cash,” the bank says.
“If a supplier of goods or services specifies other means of payment before the contract, there is usually no obligation to accept the legal race as payment.”
Cash must be accepted as payment for a debt if no other form of payment has been previously specified. (AAP)
“But the cash is legal tender! They have to take it!” I hear you say.
There are circumstances in which this is true.
Refusal to accept any legal tender – including currency – in the payment of a debt when no other form of payment has been specified in advance could have legal consequences.
The 10 richest people in Australia in 2022 were revealed
The information provided on this website is for general information only and should not be construed as legal advice. People who need clarification on these issues should receive appropriate legal advice.