Last June we posted a blog titled, “Is Cash Obsolete?”. Apparently, cash is becoming obsolete in certain situations, particularly for some smaller establishments, such as bars, restaurants, hair salons and coffee shops. While no specific data is available, anecdotally, it appears that many businesses are no longer willing to, and are not equipped to, accept cash as a form of payment. Obviously, if you find yourself in such an establishment, and are not prepared to complete the transaction through some kind of electronic payment, things could get awkward quite quickly.
It should be noted that all U.S. bills feature the words, “This note is legal tender for all debts, public and private.” However, according to the Federal Reserve website, there is no federal law that says merchants have to accept cash. Massachusetts is the only state that currently requires retailers to accept cash.
In the words of a well know issuer of credit cards, “don’t leave home without it.”
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA