All retailers are required to accept cash payments unless an exemption applies to them.
Under the law, a person selling or offering for sale goods or services at retail cannot:
- Refuse to accept cash as a form of payment for the goods or services,
- Post signs stating that cash payment is not accepted, or
- Charge a customer paying cash at a higher price than a customer would pay using any other form of payment, for example, a credit card.
“At retail” includes any retail transaction handled in person, unless one of these exceptions applies:
- by telephone, mail or the Internet
- for parking at a parking lot or a parking garage
- at a wholesale club that sells consumer goods and services through a membership model
- at a retail store selling consumer goods exclusively through a membership model that requires payment using an affiliated cellphone application
- when renting goods, services, or accommodations if collateral or security is typically required, for example, renting a car
- for consumer goods or services provided exclusively to employees and individuals other than customers
- at a location where there is no employee tasked with providing in-person assistance with any offer or purchase of goods or services
A person selling or offering goods “at retail” is exempted from accepting cash if the person:
- provides a device to consumers that converts cash into a prepaid card, and
- the device, upon request, provides a printed receipt for the cash the consumer deposits, and
- the device does not, directly or indirectly:
- require payment of any fee for the receipt of the prepaid card
- charge any fee for using the prepaid card
- require a minimum deposit on the prepaid card of more than one dollar
- limit the number of transactions that may be done using the prepaid card
- set an expiration date on using the funds deposited on the prepaid card
- require a consumer to provide any personally identifiable information to receive the prepaid card, for example, a telephone number or email address
- If the device malfunctions, the retail store where the device is located must:
- accept payments in cash until the device is fixed, and
- place a sign right next to the device or in a clearly noticeable spot on the device saying that the retail store is required to accept cash if the device malfunctions
Note: health care providers, as defined in Section 19a-17b of the Connecticut General Statutes, or professional services, as defined in Section 33-182a of the Connecticut General Statutes, are not required to accept cash. An example of a health care provider includes a hospital. Examples of professional services include those provided by doctors or vets.
For a copy of the law, please see Section 21a-434 of the Connecticut General Statutes and the amendments in Public Act No. 25-111.
Refusing to accept cash at retail, unless an exemption applies, may also be an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act.