A new Michigan law prohibits refusing cash payments in retail transactions—and real estate and property management businesses need to know whether they're covered.
Most real estate and property management owners don't realize that Michigan just passed a law that could affect how they accept payment for certain in-person transactions. House Bill 6384, which amends the Michigan Consumer Protection Act, contains a straightforward but consequential requirement: businesses cannot refuse cash or require customers to pay by credit or debit card instead.
Effective 90 days after enactment, Michigan law now prohibits any retailer conducting in-person sales of goods or services from refusing cash payment or mandating credit or debit card payment. This provision, codified in Section 3(1)(ll) of the 1976 Consumer Protection Act (MCL 445.903), makes such refusal an unfair or deceptive trade practice.
The language is direct: businesses cannot condition a sale on payment by card alone. If a customer offers cash, you must accept it.
The law applies to any business engaged in "retail sale of goods or services" conducted in person. For real estate and property management professionals, this raises a practical question: does your business fall under this definition?
If you operate an on-site office where tenants or customers make in-person payments—rent, fees, deposits, or service charges—you may be covered. Property managers who collect payments at a physical location, or real estate businesses handling closing-day transactions or earnest money deposits in person, should review their current payment practices.
The law does not appear to exempt any particular industry or transaction type, so the safest approach is to assume it applies unless your legal counsel confirms otherwise for your specific business model.
Violation of this provision exposes your business to civil liability and enforcement action by the Michigan Attorney General under the Consumer Protection Act. This means potential legal costs, damages, and regulatory scrutiny—risks that make compliance straightforward.
Practically speaking, this means:
Accept cash. If you currently operate a card-only payment system for in-person transactions, you will need to accommodate cash payments or face legal exposure.
Review your policies and signage. Check any posted payment requirements, online disclosures, or lease language that might suggest cash is not accepted or that card payment is mandatory.
Train staff. Ensure anyone handling payments understands the requirement and doesn't turn away cash-paying customers.
Update systems if needed. If your payment processing setup makes cash acceptance difficult, you may need to adjust procedures or infrastructure.
The law takes effect 90 days after enactment of HB6384. Confirm the exact effective date with your state representative's office or the Michigan Legislature's website to ensure you're compliant by the deadline.
Real estate and property management businesses that handle in-person payments should review their current practices now rather than wait for enforcement action. The requirement is clear, and compliance is manageable for most operations.
This explainer covers HB6384 and Section 3(1)(ll) of MCL 445.903. For guidance specific to your business model, consult your attorney or a Michigan real estate trade association.