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What is legal tender?
Banknotes and coins issued by the Reserve Bank of New Zealand are legal tender.
What does legal tender mean?
Legal tender is often confused with the concept of payment (exchanging goods and services for money).
Generally, you can use cash (banknotes and coins) to pay for goods and services, but businesses are not always required to accept cash as payment.
Can I still pay with cash?
Yes, you can use cash to pay unless the business clearly informs you in advance they don’t accept cash before you start shopping, or receive services from them.
They can tell you in person before you pay, or by displaying a sign on the premises.
There are also rules around how much you can pay using coins.
For example, if someone wants to pay a merchant with 10 or 20 cent coins, they can only pay up to $5 worth of 10 or 20 cent coins.
If someone wants to pay a merchant with 50 cent coins, they can only pay up to $10 worth of 50 cent coins.
If someone wants to pay a merchant with $1 or $2 coins, they can only pay up to $100 worth of $1 and $2 coins.
Can I use cash to repay a debt?
Yes. If you want to use cash to pay off debt, businesses are obliged to accept it.
Other payment methods
Today, money is not just banknotes or coins. Money takes many different forms, including credit cards, debit cards, bank transfers or payment instalment options, like Afterpay.
These other forms are called private money. Shops are allowed to accept any payment they like in exchange for their goods.
This Solutions Column has been compiled by Vani and is a regular Eastern Times editorial from Pakuranga Citizens Advice Bureau.
In Franklin, your local branches are:
- Papakura at 4A Opaheke Road, phone 09 299 6411 or 09 299 6412. Opening hours are Monday to Friday 9am to 4pm, with a JP service Monday to Friday from 11.30am to 1.30 pm.
- Pukekohe at 3A Hall Street, phone 09 869 7060. Opening hours are 10am to 3pm, with a JP service on Tuesday and Thursday from 11.30am to 12.30pm.Citizens Advice Bureau offers free, confidential and informative help.
