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Kokua Line June Watanabe |
Businesses aren’t required
to take big billsQuestion: You see signs at many businesses these days refusing to take bills larger than $20. My understanding is that it's a violation of federal law to do that, and that for payment of anything larger than 99 cents, payment can be made with 1, 5 10, 20, 50 or 100-dollar bills. Isn't refusing to take large bills an inhibition on commerce and a violation of our laws regarding the use of legal tender?
Answer: Believing that, you will be shocked to learn that there is no such requirement on anyone -- businesses, individuals or organizations -- to accept any kind of cash as payment for anything.
They may choose to accept only checks or credit cards.
But you're not alone in your thinking. In fact, yours is among the frequently asked questions of the U.S. Department of Treasury (as posted on the department's Web site -- www.ustreas.gov/education/faq/currency/legal-tender.html).
The Coinage Act of 1965 (Section 102) does say that "All coins and currencies of the United States, regardless of when coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, duties and dues."
However, there is no federal law mandating that "a private business, a person or an organization must accept currency or coins as payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a state law which says otherwise," according to the Treasury Department.
There is no such state law.
As examples of businesses refusing to accept certain kinds of currencies, the Treasury Department says a bus company can refuse to accept pennies or dollar bills as payment for fares, while movie theaters, convenience stores and gas stations may refuse to accept large denominations, usually anything above $20, as a matter of policy.
The Bureau of Printing and Engraving prints only currencies, while the United States Mint produces coins. In researching your question, we found some interesting facts about American currencies at the Bureau's Web site: www.moneyfactory.com.
Among its "fun facts," the Bureau says it produces 37 million notes a day (at its facilities in Washington, D.C., and Fort Worth, Texas.) with a face value of about $696 million; and that 95 percent of the notes printed annually are used to replace notes already in circulation. Forty-five percent of the notes printed are dollar bills.
The $100 note has been the largest denomination of currency in circulation since 1969.
The legend, "In God We Trust," became a part of the design of United States currency in 1957 and has appeared on all currency since 1963.
The Bureau says 14 1/2 million notes would make a stack 1 mile high and each note weighs about one gram. Since there are 454 grams in one U.S. pound, there would be 454 notes in one pound.
Our currency measures 2.61 inches wide by 6.14 inches long, and is 0.0043 inches thick. Currency paper is composed of 25 percent linen and 75 percent cotton.
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