Cash Payments

Article
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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:

  1. Refuse to accept cash as a form of payment for the goods or services,
  2. Post signs stating that cash payment is not accepted, or
  3. 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.

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