Can Louisiana Businesses Legally Refuse Cash as Payment?

(KMDL-FM) The ways of commerce across the world have certainly changed in the past five years. Over that period of time, in particular, we have gone from a cash-based society to a cash-free society in what seems to be just a few years.

Now, many businesses will not accept cash as payment, but what if cash is all you have? What does Louisiana law say about the acceptance of cash as a means to satisfy all debts, public and private?

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That last line, about "all debts public and private," might seem familiar to you. It's part of the verbiage that is written on paper money that is used in the United States. On that paper money, there is a notification that this "instrument" is legal tender. But does that mean a business owner has to accept that "instrument" as payment if they don't want to?

Are All Businesses in the United States Required to Accept Cash as Payment?

The short answer, at least on the federal level, is no. There is no requirement that any business must accept cash for goods and services offered. The legal tender language only means that the instrument is valid and legal to offer for payment of debts, but nowhere in the United States monetary laws or codes is there a stipulation that a business must accept cash.

However, there are certain states that have made stipulations in their laws that insist cash payments be allowed. Among the states that have such a stipulation are Massachusetts, New Jersey, and Tennessee. As of August 1, 2025, you can add one more state to that list. That state is Louisiana.

Do Businesses Operating In Louisiana Have to Accept Cash As Payment?

House Bill 448, which was passed by the legislature into law, stipulates that as of August 1, 2025, many retail businesses will be required to accept cash for in-person purchases.

The Consumer Payment Choice Act does have certain allowances where cash payments may be declined. Many of those scenarios, such as payment for a service online or a transaction that is in excess of $5,000, are not subject to the rule of law.

You should know that if you want to pay cash, you can't be charged a higher price for doing so. Many businesses may also have you exchange that cash for a gift card at a kiosk at their location.

That is perfectly acceptable under the law. The law also provides relief for situations where a business is temporarily unable to accept cash as payment do to a technological or systemic failure.