Shoppers are being warned as major UK supermarkets, including Sainsbury’s, Asda, and Tesco, have begun phasing out cash payments in several of their outlets. This shift is part of a growing trend towards card-only transactions, prompting concerns among those who rely on cash.
In August, Tesco announced that 40 of its UK café sites would go cashless, where customers now order food through digital screens and must pay by card or contactless methods. Meanwhile, Asda has implemented similar changes, removing cash payments from nearly 270 of its petrol stations, where payments can now only be made at the pumps.
Sainsbury’s has stated that most of its stores and petrol stations still accept cash, although the exact number of locations affected by the change remains unclear. Despite these adjustments, all three supermarket chains—Sainsbury’s, Asda, and Tesco—continue to accept cash in their main stores and most outlets.
The shift towards cashless payments is legally permissible. According to fact-checking organisation Full Fact, it is not illegal for shops to refuse cash, as the term “legal tender” has a specific legal definition that doesn’t require businesses to accept it. The misconception stems from the idea that businesses are obliged to take cash because it is legal tender; however, this only applies to the repayment of debts.
Full Fact explained: “It’s not illegal for shops or businesses to refuse to accept cash. They can also refuse to accept card payments. And while cash is ‘legal tender’, this has a narrow definition that doesn’t mean businesses must accept it.”
The Bank of England clarified: “Legal tender has a narrow technical meaning which has no use in everyday life. It means that if you offer to fully pay off a debt to someone in legal tender, they can’t sue you for failing to repay.”
As cashless transactions become more widespread, the trend may continue, with more retailers expected to adopt card-only payments in the future.
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