Is it illegal for NC businesses to refuse cash? What the law says

When it comes to paying for things, customers usually have plenty of options.

For everyday items at a grocery store or gas station, cash, debit and credit cards, and even cryptocurrency are acceptable forms of payment at most businesses.

With the rise of technology, however, more businesses around the country are refusing cash payments in favor of contactless methods.

But is it legal in North Carolina for businesses to refuse cash?

Here’s what you need to know.

Can NC businesses refuse to take cash?

Yes. There is no law on the books that would require businesses to accept cash, according to Lee Robertson, the managing partner at Robertson & Associates in Charlotte.

In January 2023, N.C. House members introduced House Bill 20, a measure that would prohibit businesses from refusing cash, but the bill died in the Senate.

Why is it important for businesses to accept cash?

According to Cash Matters, an organization dedicated to promoting the role and relevance of cash as an essential part of the payment landscape, cash is crucial because more than 1.6 billion people around the world are unbanked or underbanked, meaning they lack access to credit and debit cards.

In North Carolina, 3.5% of residents (roughly 385,000 people) do not have bank accounts, The News & Observer reported.

Cash is also the only payment method that functions independently without a third party and it’s also the only form of payment with no threshold to its use, the organization says.

Additionally, cash prevents governments and businesses from monitoring transactions, and unlike credit cards, there is no time offset between paying and receiving money when using cash.

What are the downsides to using cash?

While using cash comes with many upsides, it also has a few drawbacks.

One of them, according to Qube Money, a digital payment software company, is that carrying large amounts of cash can make you a target for thieves.

Also, if you lose cash, you’re entirely out of luck, while credit cards can be disabled or canceled before thieves can use your funds, according to the company.

Credit and debit card companies also have zero-fraud liability guarantees that allow consumers to contest purchases and get their money back, while cash lacks that protection, the company says.

How to get a bank account in NC

If you need assistance signing up for a bank account in North Carolina, Bank On NC, an organization that helps connect consumers to safe and affordable banking products, can help.

They have a list of banks that offer certified checking accounts with no overdraft or low balance fees, and free check cashing services.

You can also utilize other resources, such as their Credit Education Instruction Tool, tips for dealing with debt and debt relief programs from the COVID-19 pandemic.

This story was originally published August 19, 2025 at 3:24 PM with the headline "Is it illegal for NC businesses to refuse cash? What the law says."

Evan Moore

The Charlotte Observer

Evan Moore is a service journalism reporter for the Charlotte Observer. He grew up in Denver, North Carolina, where he previously worked as a reporter for the Denver Citizen, and is a UNC Charlotte graduate.