A new Michigan law makes it illegal for retailers to refuse cash payments—and violations carry real legal consequences.
Most Michigan retail owners don't realize they may soon be legally required to accept cash, even if they'd prefer customers use cards. That's the core of HB6384, a consumer protection bill that amends Michigan's unfair trade practices law and creates a specific obligation for in-person retailers.
HB6384 adds a new prohibition to the Michigan Consumer Protection Act. Under the new Section 3(1)(ll) of the 1976 PA 331 law, retailers conducting in-person sales of goods or services are now prohibited from refusing to accept cash or from requiring customers to pay by credit card or debit card instead.
In plain terms: if you operate a brick-and-mortar retail business in Michigan, you cannot tell a customer "we only take cards" or refuse a cash payment. The law treats this refusal as an unfair or deceptive trade practice.
This applies to any retailer making in-person sales—whether you run a small shop, a restaurant, a service business with a physical location, or a larger operation. Online-only retailers are not covered. The law targets the practice of going cashless entirely.
It does not require you to accept every form of payment (checks, cryptocurrency, etc.). It specifically requires acceptance of cash.
If you violate this requirement, you expose your business to civil liability under the Michigan Consumer Protection Act. That means customers or the Michigan Attorney General can pursue enforcement action against you. The consequences can include damages, attorney fees, and regulatory action—not just a warning.
This is why the provision matters even if you think it's unlikely a customer would sue: the law gives enforcement power to the state, not just private parties.
HB6384 becomes effective 90 days after enactment. If you operate in Michigan, you should confirm the exact effective date with your legal counsel or trade association, as the bill's signing date determines when the 90-day window closes.
Review your current payment policies. If your business currently refuses cash or requires card-only payment, you'll need to change that practice before the law takes effect. Make sure your point-of-sale systems, signage, and staff training reflect that cash is accepted.
If you have questions about how this applies to your specific business model—for example, if you operate a hybrid online-and-in-person model—consult with a business attorney familiar with Michigan consumer protection law.
Source: HB6384, amending MCL 445.903, Section 3(1)(ll), Michigan Legislature.