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 that 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.
When do New Zealand banknotes and coins stop being legal tender?
Our banknotes and coins stop being legal tender when we call them in (demonetise) or withdraw them from circulation. This means they’re no longer considered money and you won’t be able to pay with them.
Series 6 and 7 of New Zealand $5, $10, $20, $50 and $100 genuine banknotes are legal tender, regardless of what condition they are in.
The current New Zealand 10 cent, 20 cent, 50 cent, $1 and $2 coins are also legal tender.
You can exchange old banknotes or coins that are no longer legal tender, or banknotes that are damaged or incomplete (have pieces missing) which can't be used for payment with us.