Reminder: When fuel, grocery retailers are required to accept cash

Fuel and grocery retailers are now required to accept cash for in-person purchases and may only refuse such payments in certain situations.

The Australian Government recently introduced new rules that compel many food and fuel businesses to accept cash payments. 

The mandate, which took effect this month, applies to in-person transactions of $500 or less, made between 7am and 9pm. Retailers can refuse cash for purchases made outside those hours, or for transactions of more than $500.

Small businesses with aggregate annual turnover under $10 million are exempt from the new rules, unless they operate under a big retailer’s trademark. 

Previously, businesses could generally choose which payment types they accept. However, consumers must be made aware of these terms and conditions before they make a purchase.

The rules are designed to ensure Australians can continue to pay with cash for essentials. The Government will review the mandate after three years to ensure it is functioning as intended.

To ensure compliance, CommBank advised businesses to first determine if they are required to accept cash, based on the type of retailer they are and whether the business is a small business.

There is currently no universal, mandatory signage requirement for businesses to display, the bank said.

For larger retailers, the mandate may mean reintroducing policies and processes for handling cash that had previously been phased out, or introducing new ways to streamline cash handling.

According to CommBank, these changes may include re-establishing cash floats and tills, updating staff training to handle, verify and deposit cash, more frequent bank deposits, and reconciliation procedures.

For SMEs, an important step is to have turnover documented clearly to demonstrate they are exempt.

The post Reminder: When fuel, grocery retailers are required to accept cash appeared first on Inside Retail Australia.