Cash loses its lustre

Can a company refuse payment in cash? It doesn’t seem right, and several consumers have written to query the legality of such a policy.

kulula.com, for example, now only accepts card payments for their on-board “refreshments”.

Maura Debenedetti of Pretoria got the “sorry, no cash” line when she visited a gift shop in her local mall recently.

“The shop attendant told me that they don’t accept cash anymore, only cards.

“It felt kind of surreal because I thought that cash was still legal tender in SA.

“I know retailers can refuse to accept too many coins but in my case, I didn’t even had the time to take the notes out of my purse.”

Apparently it is not illegal to refuse cash payment.

The SA Reserve Bank said: “The rand is the legal currency of South Africa, and as such, represents the only approved payment method for cash.

“However, the payment ecosystem is far broader and consists of a number of different payment mechanisms.

“Due to the security risks some retailers have opted not to accept physical cash anymore and prefer other payment mechanisms such as debit and credit cards.”

Companies who accept card payments may not add a percentage to the cost of an item or service to cover their bank fees. That would be illegal.