Far from being the reigning monarch, it would seem cash’s crown is slowly slipping. In 2024, cash transactions accounted for just 9% of all payments in the UK. That’s down by almost a quarter (23%) since 2019, according to research from UK Finance.
Yet almost two-thirds (61%) of adults still use cash at least weekly, and around 7 million people delve into their pockets for notes and coins every single day. This is still a sizable figure - but uptake is decidedly dwindling.
In fact, the rapid digitisation of services is directly impacting how we handle cash. Recently, the pub chain Wetherspoon’s found itself in the headlines for refusing to accept Scottish banknotes in England.
The hospitality giant’s decision in September was designed to combat a reported rise in fraudulent £20 and £50 Scottish notes. As well as being decried by the public and organisations like Campaign for Cash, the news also raises a practical question for every business, large or small: If cash use is shrinking but not disappearing, what rights do businesses actually have when deciding how customers can pay?
Let’s balance the commercial realities against potential pitfalls for businesses reviewing their payment policies in an increasingly online age.
“Legal tender” is a well-known phrase, but it’s not as definitive as it may sound. It certainly sounds decisive, but it is often misunderstood or misconstrued.
In UK law, it has a narrow, technical role that is connected to the repayment of debts in court. Somewhat surprisingly, it does not dictate terms for everyday retail transactions. In simple terminology, legal tender status does not constitute a de facto right for a customer to insist that a business take a particular note or coin for a new purchase.
This is why a customer simply cannot demand that a shop accept a £50 note for a low-value item, and why businesses are well within their rights to decide what they will take at the counter.
Most day-to-day purchases do not constitute settling an existing debt; they are the start of an entirely new contract. For this key distinction, any business offering goods or services does so on its own terms, and by doing business with them, the customer is deciding to accept those terms. Payment method is part of that contract and, if customers don’t like it, they have the freedom to take their hard-earned cash elsewhere.
This may sound strange, but it is the fundamental foundation for the government’s position that businesses can choose which forms of payment they accept. A retailer can be entirely cash only, card only, or anything in between. It can refuse cash if it wants to, or refuse certain denominations of currency if the risk associated with it is considered too substantial. For example, restaurants or corner shops often reject £50 notes, as they are statistically among the most counterfitted, according to the Bank of England.
What matters is that the policy in question is a genuine term of trade, not an arbitrary surprise at the till. For example, it should be signposted on the premises or at the point of sale.
Although businesses have a far-reaching freedom to choose their preferred payment methods, how that choice is exercised does matter.
Customers should be told clearly and early on if a business does not accept certain payment types. If someone only discovers a restriction while actively trying to pay, the issue is less about legality and more about fairness, customer experience, and possible reputational damage. Visible and unambiguous signage in store and consistent messaging online prevent confusion and reduce possible friction.
In this respect, while Wetherspoons’ policy itself is legal, reports from national media outlets like The Sun suggest that the businesses’ signage may be inadequate, which is perhaps what has incited the fury of customers.
As well as possible reputational fallout, there is also the issue of accessibility. Some customers may depend on cash because of accessibility concerns (for example, dexterity or cognitive issues or no access to banking services), a lack of digital expertise, or personal budgeting preferences.
In such cases, if a policy disproportionately impacts people with ‘protected characteristics’ under the Equality Act 2010, it needs to be justified as proportionate and necessary in order to achieve a legitimate business aim. That does not mean cash must always be accepted, but it does mean a policy should be thought through thoroughly with your customer base in mind.
The slow but sure move away from physical cash isn’t a singular phenomenon - it’s often driven by varying practical realities. Digital payments are faster at the point of sale, reduce the administrative burden of cash handling, and limit the volume of money stored on site. For some businesses, these benefits can significantly reduce their exposure to theft and counterfeit risk. In high-volume environments, especially, those gains can be significant.
When viewed through the lens of improving operational efficiencies for businesses, refusing certain notes or moving to card-only can be a sensible decision - even when it does attract public debate.
Even as its overall share of payments continues to shift, cash remains part of daily life for many customers. In fact, with new outlets and payment methods (like variants of Crypto) being created regularly, it is only logical that the percentage of cash involved in sales will drop - but this dip isn’t as dire as headlines might have you believe.
People still use ‘cold hard cash’ to manage their spending or simply because it is familiar and intrinsically reliable. There is also the resilience argument to be considered. Say you’re about to use Apple Pay or Revolut on your phone and your device dies, or you have absolutely no network connection, surely it’s sensible to reach into your wallet for a cash equivalent? In this regard, cash remains the only payment method that works with absolutely no infrastructure beyond a till and a safe.
So the real question is not “can we refuse cash?” The question is whether your chosen mix of payment methods helps your business to trade optimally, manage risk sensibly, and serve customers fairly in an economy where cash is used less, but still used by millions of people day in, day out.
If you would benefit from reviewing your payment policy or balancing customer needs with operational risk, contact us.
