What is a legal tender Why are demand deposits not a legal tender?
In this context chequable demand deposits is not money because a person can legally refuse to accept payment through cheques.
The legal tender status given by the government to money may be limited or unlimited.
Fiat money is any money backed by the order (fiat) of the government to act as money..
Can legal tender be refused?
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. … In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment (where the obligation to pay may arise at the same time as the offer of payment).
Can a shop refuse to take cash?
According to the Money Saving Expert, shops are legally allowed to refuse cash payment for items as long as they are not discriminating against the customer. … “It means if you have a court awarded debt against you if someone tries to settle and they’re paying in the legal tender you cannot refuse it.
What happens if a store refuses cash?
The short answer: yes. As mentioned, there is no federal law that mandates private businesses to accept cash as a form of payment. Ultimately, it’s up to the business to decide whether or not they want to accept cash payments (unless there is a state or local law that says otherwise).
Is refusing cash payments illegal?
The retailer is free to set the terms of payment, and refusing to accept cash is not against the law.
Why are checks not considered legal tender?
If there is no money in the account, the check is worthless. … Also, all checks have expiration dates and all checks require verification of the drawer’s signature. For something to be legal tender, there has to be a government guarantee that the note is good.