Is it illegal not to accept cash for payment?
A plain-English guide for New Zealand sellers (including garage sales, market stalls and side-hustles) explaining whether you must accept cash, practical tips, exceptions to watch for, and safe alternatives for taking pa
Quick takeaway
In New Zealand it is generally not illegal for a private seller or business to refuse cash. 'Legal tender' means currency is official money, but there is no blanket law forcing shops or individuals to accept notes or coins. You should, however, be clear about payment terms (signage or listing), follow any sector-specific rules or government requirements, avoid discriminatory refusal of service, and consider safety and customer convenience. For garage sales and casual selling, choose and advertise your preferred payment methods and offer alternatives like bank transfer, PayID, or card payments (including services that let you accept cards without an EFTPOS machine).
No general NZ law forces businesses or private sellers to accept cash.
Legal tender status does not compel acceptance of cash in every transaction.
Be clear about payment terms, watch for sector-specific rules, and avoid discrimination.
Quick answer
Short version: No — in New Zealand it’s generally not illegal to refuse cash. Businesses and private sellers can decide which payment methods they accept and set those terms before a sale.
Longer version: Banknotes and coins are legal tender, but legal tender status doesn’t automatically require a retailer or person to accept cash for every transaction. There are, however, some limited exceptions and practical considerations, which are covered below.
- You can choose to be cash-only, card-only, or both.
- You must clearly communicate your payment terms (signs, listings, online posts).
- Avoid decisions that could be unlawful discrimination and be aware of sector-specific rules.
Why acceptance of cash is optional
Legal tender means currency issued by the Reserve Bank is official money, but most everyday transactions are contractual: a buyer offers a payment type and a seller accepts or declines. Unless a specific law or contract requires a particular payment method, the seller sets the terms.
For shops and sellers that pick their payment methods, the important practical rule is transparency. If you refuse cash but don’t make that clear, you may lose sales or get complaints, but that’s usually a commercial issue rather than a criminal one.
- Legal tender ≠ automatic right to force acceptance of cash.
- Transaction terms are agreed between buyer and seller.
- Clear signage avoids disputes and saves time.
Exceptions and cautions to watch for
There are limited situations where a particular form of payment must be accepted or where refusing cash could cause legal problems. Examples can include certain government services, statutory payments, court-ordered payments, or specific contractual terms that require a payment method.
Also remember human-rights and consumer laws: refusing service for a protected reason (race, religion, disability, etc.) can be unlawful. Refusing to accept cash in a way that indirectly discriminates against a protected group could create legal exposure.
- Some government or statutory payments may require specific payment methods — check the relevant agency.
- Contracts can specify acceptable payment forms; once agreed, you must follow them.
- Do not use payment rules as a pretext for unlawful discrimination.
Practical guidance for garage sale payments
If you’re selling at a garage sale in NZ, you’re free to choose how you want to get paid. Most casual sellers mix cash for small amounts and electronic payments for larger items.
Make it easy for buyers to know what you accept: list payment options in your online ad, and put a clear sign at the sale. Typical effective combinations are: cash + bank transfer (PayID or internet banking), cash + eftpos/card via a mobile service, or cash-only for very small, neighbourhood garage sales.
- Post payment methods in ads (e.g. “Cash or bank transfer preferred; card accepted via phone”).
- Have change ready if you accept cash; use a tin or cash box and keep it secure.
- For big items, consider asking for a deposit via bank transfer to secure the sale.
Safer cash handling and record-keeping tips
Cash carries theft and safety risks. Keep only small amounts of cash on hand, and avoid displaying large sums. Have someone help you run the sale or bank excess cash quickly.
Keep a simple record of transactions (item, price, payment method) for tracking income and for any follow-up if a buyer disputes a sale.
- Count and store small change in a locked cash box.
- Bank or transfer cash takings regularly, or record card/transfer receipts promptly.
- If you accept deposits, get a written confirmation (text or email) about terms.
Cardless and contactless alternatives (what to offer instead of cash)
If you don’t want to take cash, offer easy alternatives so customers can still buy. Common options in NZ: bank transfer (PayID or internet banking), mobile payment apps like Apple Pay or Google Pay, card acceptance via a phone/tablet, or buy-now-pay-later services on larger items.
Choose the options that suit the scale of your sale. For a one-off garage sale, a bank transfer and a way to accept cards through a mobile phone is often enough.
- Bank transfer/PayID: simple, low-cost, works for larger sums.
- Mobile card acceptance: lets buyers pay by card without a full EFTPOS terminal.
- Digital wallets (Apple/Google Pay) if you accept contactless card payments.
Structured summary
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- If you’re running a garage sale, you can set payment methods—cash-only, card-only or a mix—just tell buyers before sale.
- Use clear signage and consider easy cashless options (bank transfer, PayID, card apps) to increase sales and reduce safety risks.
- PocketMoney is one convenient way for casual sellers to accept card payments without a traditional EFTPOS machine.
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FAQ
Can I refuse cash at my stall or garage sale?
Yes. As the seller you can set payment terms for your stall or garage sale. Make those terms clear in any advertising and with signs at the sale so buyers know what to expect.
If a buyer only has cash and I refuse it, am I breaking the law?
Generally no. Refusing cash is usually a commercial decision rather than a criminal offence in New Zealand. However, if your refusal involves discrimination against a protected characteristic or breaches a specific legal requirement or contract, there could be legal consequences.
Are coins and notes not legal tender then?
Banknotes and coins are legal tender in New Zealand, meaning they are official currency. That status does not automatically force a seller to accept them in every transaction.
What’s the easiest cashless option for a one-off garage sale?
Many sellers use bank transfer (PayID) for larger items and a mobile card-acceptance option or card-by-link for convenience. Choose what you and your likely buyers find easiest and advertise it up front.
Do I need a receipt if I accept cash?
A receipt isn’t legally required for most casual sales, but it’s good practice. Receipts help with disputes, returns and record-keeping for your own accounts or tax purposes.
Should I use PocketMoney to accept cards at a garage sale?
PocketMoney is a practical option if you want to accept card payments without a traditional EFTPOS machine. It’s useful for casual sellers who need a simple way to take cards, but weigh the fees and convenience against bank transfers or cash.