When it comes to paying for items in shops, many customers will have their own preference whether they use cash or card depending on personal circumstances but there’s a little-known rule that many people don’t know
Developments in digital payment methods such as contactless cards and mobile phone options has meant transactions can these days be quicker and more convenient for both customers and retailers.
However, there are many people who still prefer to use cash when buying products or services. The reasons for this could be for budgeting purposes, with the use of physical notes and coins making it easier to keep track of spending.
It is also sometimes favoured among certain groups of people such as the elderly, those with mental health issues or those who use cash to evade financial control by an abuser.
Businesses may also prefer to accept either method for speed and ease or to avoid card transaction fees with cards. But what many probably don’t know is that the law states that any UK shop can refuse to accept cash or card payments, despite what the customer wants or needs to pay with.
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There is currently no legislation which states that physical currency has to be accepted in the UK. Therefore businesses are free to choose which payments they opt to take. The issue came to light recently after a pub chain decided to stop accepting some forms of cash.
In November 2024, Wetherspoons announced it would cease taking Scottish £20 and £50 notes due to fears over “criminal gangs” distributing counterfeit currency.
Liberal Democrat MP Angus MacDonald asked the government what discussions it had had with the company over their policy. Treasury minister Lucy Rigby confirmed there is no law over what currency businesses must accept.
“There is no legal requirement for businesses to accept specific forms of payment,” she said. “Each business decides which payment methods to accept based on factors including cost and customer needs and preferences.”
She added that there were no plans to change the current legislation but confirmed there had been recent changes in the law around the availability of cash. It means the Bank of England has new powers to promote wholesale cash distribution.
“In recognition that millions of people continue to use cash, the Financial Services and Markets Act 2023 introduced safeguards to protect the public’s access to cash,” she said.
Rigby also confirmed it was up to individual businesses to choose what they would accept in payment. “It remains the individual retailer’s choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost.””
Wetherspoons explained it was ceasing to accept the currency after the Bank of England informed it there were a large number of fake Scottish £20 notes being put into circulation by organised crime gangs. The company was told how to identify the fakes but warned not to accept them if there were any doubts.
Spokesman Eddie Gershon said: “This warning, coupled with an increase in the receipt of fake notes by pubs, led to a decision in late November last year not to accept Scottish £20 notes. This does not apply in Scotland and certain towns and cities with close links to Scotland. Scottish £50 notes are not accepted for the same reason. We will continue to keep the decision under review.”
