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Can Businesses Legally Refuse Cash in South Africa? Your 2025 Guide to the Rules
It’s a familiar moment in modern South Africa. You walk into your favourite coffee spot, order your drink, reach for your wallet, and the barista politely says, “Sorry, we’re cashless.” For many, it feels counterintuitive. After all, South African banknotes are still legal tender. So how can a business legally refuse cash?
The short answer in 2025: they can, and it’s perfectly lawful.
What the Reserve Bank actually says
The South African Reserve Bank (SARB) has reaffirmed its stance for 2025. While cash remains legal tender, businesses are under no obligation to accept it as a method of payment. The principle is simple: legal tender settles a debt, but a transaction in a shop or restaurant is not a debt until both parties agree to the terms of sale.
This means that a business can lawfully set its own payment rules, such as cash, card, or digital, as long as these terms are clearly communicated to customers before the sale. Think of it as a mutual agreement: the business offers goods or services under certain conditions, and the customer decides whether to proceed.
Freedom of choice, on both sides
Businesses in South Africa operate under the principle of contractual freedom. Just as you can choose where to shop, a store can choose how it wants to be paid. What matters is transparency. If a café or clothing store decides to go cashless, it must display this policy clearly, whether through a notice at the entrance or on the till.
For consumers, the power lies in choice, too. If you prefer to pay with cash, you can simply take your business elsewhere.
Why some stores are ditching cash
The move towards cashless trading isn’t about excluding customers. It’s largely about practicality and safety. Handling cash increases the risk of theft and counterfeiting, and it costs time and money to manage. For many businesses, especially small ones, digital payments are quicker, safer, and easier to track.
There’s also the matter of changing habits. With contactless cards, mobile wallets, and QR code payments becoming everyday tools, South Africans are increasingly comfortable living without cash. Even informal traders and markets are beginning to follow the trend, using digital platforms that cut out the risk of carrying physical money.
The legal limits
There are still rules to follow. Businesses that refuse cash must ensure:
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Clarity: Customers know in advance that cash is not accepted.
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Fairness: The policy doesn’t discriminate or unfairly target any group.
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Compliance: It aligns with the Consumer Protection Act, which requires honesty and transparency in transactions.
As long as these principles are upheld, refusing cash is entirely within the law.
The big picture: South Africa’s payment future
The SARB is modernising the country’s payment system through its Vision 2025 framework, which aims to make digital transactions safer and more inclusive. Importantly, this framework does not outlaw cash; it simply supports a more flexible, tech-driven payment landscape.
Some large retailers are already experimenting with fully cashless branches, while many independent businesses are weighing the risks and rewards. The direction is clear: South Africa is heading towards a hybrid economy where both cash and digital coexist, but cash is no longer the default.
What this means for you
If a shop refuses your cash, it’s not breaking the law. It’s exercising a choice. You, as the customer, have a choice too: to adapt or to find businesses that still accept physical money.
The real takeaway? The debate over cash versus cashless isn’t about legality anymore. It’s about convenience, security, and how we define trust in a changing financial world.
Also read: Are Tap-to-Pay Cards Really Safe? What Every South African Should Know in 2025
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Featured Image: TechCentral
