HB205 Alabama 2024 Session

Summary

Primary Sponsor

Prince ChestnutRepresentative

Democrat

Session

Regular Session 2024

Title

Retail establishments; banning cash as payment source prohibited, exceptions provided

Summary

HB205 would require Alabama retailers to accept cash and not force customers to pay with credit, and to provide store credit when they cannot make exact change due to cash shortages, with the law taking effect October 1, 2024.

What This Bill Does

If passed, retailers may not discriminate against cash buyers by requiring credit payments. They must accept legal tender when offered, though they may choose not to accept dollar bills over $20. If a cash or coin shortage prevents giving exact change, the store must issue store credit or a gift card for the amount of the missing change.

Who It Affects

• Retail establishments in Alabama: must accept cash, cannot require credit payments, may limit large-denomination notes, and must issue store credit when unable to give exact change due to shortages.
• Customers paying with cash: protected from being forced to use credit and will receive store credit or a gift card if the store cannot provide exact change because of a cash/coin shortage.

Key Provisions

• Retail establishments shall not discriminate against cash buyers by requiring the use of credit; all shall accept legal tender when offered.
• A policy may allow not accepting legal tender notes larger than $20.
• If a store cannot make correct change due to a shortage of coins or cash, it must provide store credit or a gift card in the amount of the change due.
• The act becomes effective October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions