South Carolina Law on Businesses Refusing Cash

SOUTH CAROLINA — As more customers rely on digital wallets and credit cards, some South Carolina businesses have started to go entirely cashless. But can they legally refuse cash payments?

According to current federal and state laws, the answer is yes — with a few caveats.

Federal Law: Cash Is Legal Tender, But Not Mandated

While U.S. coins and paper currency are recognized as legal tender for all debts and taxes, the federal government does not require private businesses to accept cash. The Federal Reserve confirms that business owners may set their own payment policies unless local or state laws dictate otherwise.

“Private businesses are free to develop their own policies on whether to accept cash,” the Federal Reserve states.

That means a restaurant, retail shop, or even a venue in South Carolina can post a “No Cash Accepted” sign and still operate legally.

South Carolina’s Position: No Statewide Cash Requirement (Yet)

Unlike states like New Jersey, which passed a law mandating that most businesses accept cash to protect lower-income residents, South Carolina has not adopted such a measure.

However, in 2023, lawmakers introduced House Bill 3694, which proposed that all businesses with a retail license in the state be required to accept cash. The bill was referred to the Committee on Labor, Commerce and Industry, but hasn’t moved forward since January 2023.

You can read the proposed bill here.

This means, for now, the state defers to business owners — though advocates continue pushing for more inclusive policies that consider those without credit access.

Why It Matters: Economic Inclusion vs. Market Freedom

A 2022 study by the Pew Research Center found that lower-income Americans are more likely to rely on cash. Nearly 30% of households earning less than $30,000 annually reported using cash for all or nearly all purchases.

Supporters of cash acceptance laws argue that cashless policies can unfairly impact:

• Older residents
• The unbanked or underbanked
• Those without access to smartphones or credit

But others, including business leaders like Jimmy Gray, President of the Myrtle Beach Area Chamber of Commerce, say the market should decide.

“If a business only accepts cards and starts losing customers, they’ll adapt,” Gray explained. “We support maximum flexibility.”

Can Local Governments in South Carolina Require Cash?

Yes, in theory.

According to a South Carolina Association of Counties spokesperson, counties can pass ordinances requiring businesses to accept cash payments. But no South Carolina county has enacted such a rule so far.

It’s unclear if any municipalities in the state have adopted similar regulations. The Municipal Association of South Carolina declined to comment.

The Bottom Line

As of July 2025:

• South Carolina does not mandate businesses to accept cash
• No counties or cities currently require it
• A proposed state law remains stalled in the legislature

So if a store in your area only takes card or digital payments, it’s within their rights — unless local law changes.

Have you encountered a cashless business that caught you off guard? Share your experience at SaludaStandard-Sentinel.com.