In most of California, it is not illegal for a business to refuse cash. There is no statewide law requiring cash acceptance, so whether it is illegal to not accept cash in California depends entirely on the city. San Francisco and Berkeley have local ordinances that require most brick-and-mortar businesses to take cash, and a small number of other municipalities may have their own rules. Everywhere else in the state, a business can legally decline your dollars and require a card or app instead. San Francisco’s ordinance is also under active repeal consideration as of early 2026, so the picture may narrow further.
Why “Legal Tender” Doesn’t Force Businesses to Take Cash
The phrase printed on every bill is misleading. Under federal law, U.S. currency is legal tender for “all debts, public charges, taxes, and dues.”1Office of the Law Revision Counsel. 31 USC 5103 – Legal Tender The operative word is debts. If you already owe money, cash settles the debt. But when you walk up to a register to buy something, no debt exists yet, and the business gets to set its own payment terms.
The Federal Reserve puts it plainly: “There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services.”2Federal Reserve. Is It Legal for a Business in the United States to Refuse Cash as Payment Unless a state or city law fills that gap, going cashless is legal. California has not filled that gap statewide. A 2020 bill would have required all brick-and-mortar businesses to take cash, and a separate proposal, SB 926, would have required acceptance for transactions up to $5,000. Neither passed. As of 2026, no statewide mandate exists.
San Francisco’s Cash Acceptance Rule
San Francisco passed Ordinance No. 100-19 in 2019, adding Article 55 to the city’s Police Code. It requires most brick-and-mortar businesses in the city to accept cash from customers.3City and County of San Francisco. Ordinance No. 100-19 – Acceptance of Cash by Brick-and-Mortar Businesses The rule applies at the physical point of sale. Online, phone, and mail orders are not covered because there is no in-person transaction. Food trucks, pop-up shops, service-based businesses such as hair salons, and nonprofit organizations are also exempt.p>
The Repeal Effort
In February 2026, San Francisco city leaders introduced a proposal to repeal the ordinance entirely, and the Board of Supervisors’ public safety committee took it up. If the repeal passes, San Francisco businesses would no longer be obligated to accept cash, putting the city back in line with the rest of California. Check the current status with the city before relying on the ordinance.
Berkeley’s Cash Acceptance Rule
Berkeley passed Ordinance No. 7681-NS around the same time. It requires every covered business within the city to accept cash for any transaction involving tangible goods or services.4City of Berkeley. Ordinance No. 7681-NS – Cash Acceptance Requirements Like San Francisco’s law, it targets brick-and-mortar retail and carves out transactions that don’t happen in person.
No other California city is widely known for having enacted a similar rule, though any municipality can pass one. If you’re unsure about a specific city, the fastest check is that city’s municipal code.
What the Local Rules Don’t Cover
Even inside San Francisco and Berkeley, the mandate has real limits. The exemptions follow a practical pattern: if the transaction isn’t in person, or if handling cash is impractical, the rule usually doesn’t apply.
- Orders placed online, by phone, by catalog, or by mail are exempt because there is no physical register.
- Self-service kiosks such as parking meters and transit ticket machines typically get a pass.
- Food trucks and pop-up shops are explicitly exempt in San Francisco.
- Service businesses like salons and personal trainers may be exempt under San Francisco’s ordinance.3City and County of San Francisco. Ordinance No. 100-19 – Acceptance of Cash by Brick-and-Mortar Businesses
- Nonprofits are carved out in San Francisco.
Membership-based businesses like wholesale clubs and private venues can sit in a gray area, since they argue the customer accepted cashless terms at signup. Whether that holds depends on the ordinance’s exact wording.
Penalties Where Cash Acceptance Is Required
San Francisco’s ordinance uses a graduated penalty structure. The first two violations in a 12-month window are infractions; a third becomes a misdemeanor.3City and County of San Francisco. Ordinance No. 100-19 – Acceptance of Cash by Brick-and-Mortar Businesses
- First violation: fine between $50 and $100.
- Second violation within 12 months: fine between $100 and $200.
- Third or subsequent violation within 12 months: misdemeanor, with a fine between $500 and $1,000.
The San Francisco Office of Labor Standards Enforcement handles complaints and oversees compliance.5City and County of San Francisco. Labor Standards Enforcement, Office of Enforcement generally begins with warnings and education, but repeated refusal escalates.
What to Do If a Business Refuses Your Cash
Your options depend on where you are. In San Francisco or Berkeley, the refusal may violate local law and there’s a place to report it. Anywhere else in California, a business can lawfully turn your cash away and you have no legal claim against it.
If you’re inside a city with a cash-acceptance rule, write down the business name, address, date and time, and note any posted signage about payment. San Francisco complaints go to the Office of Labor Standards Enforcement. Berkeley routes complaints through its own municipal enforcement channels.
For general consumer disputes, California’s Department of Consumer Affairs publishes guidance on complaint letters and escalation steps, including referrals to the California Attorney General’s Office and the Better Business Bureau.6Department of Consumer Affairs. Consumer Self-Help, Tips and Resources to Resolve Consumer Complaints Small claims court is available if a refusal caused you actual, measurable financial harm, though proving damages beyond inconvenience is difficult. California small claims handles individual claims up to $12,500.7California Courts Self Help Guide. Deciding Between Small Claims and Limited Civil
Cash Discounts and Credit Card Surcharges
A separate California rule affects what a business can charge you based on how you pay. California Civil Code Section 1748.1 prohibits retailers from adding a surcharge for paying with a credit card rather than cash. A store cannot ring you up for $10.50 on a card if the price is $10. Businesses can, however, offer a discount for paying with cash, which reaches a similar result through different framing. The Ninth Circuit found in 2018 that the surcharge ban raises First Amendment concerns, and its enforceability remains somewhat unsettled. Offering a cash discount is clearly legal and increasingly common at gas stations and smaller retailers.