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Cash acceptance rules under the codes
The Cash Acceptance Industry Codes make sure that consumers are provided with a reasonable opportunity to pay in cash:
- at certain supermarket and fuel retail sites
- for in-person payments only
- when transactions are $500 or less, and
- between the hours of 7 am and 9 pm.
The cash acceptance mandate does not apply during late night trading hours. Businesses may choose to accept cash payments at night from 9 pm to 7 am but are not required to do so.
This rule addresses concerns about staff security when handling cash at night. It also accounts for some fuel business models that operate solely with digital payments overnight.
The codes do not prevent businesses from also accepting other forms of payment.
Retailers do not need to accept payment other than by way of . For example, they are not required to accept a payment for more than $5 made entirely with 5 cent coins.
Meaning of reasonable opportunity
‘Reasonable opportunity’ means that the number of cash payment options at the retail site are reasonable and proportionate. This takes into account:
- consumer demand for paying in cash, and
- the size and nature of the retailer’s business.
Providing a reasonable opportunity to pay in cash does not mean every checkout at a retail site must accept cash. It also does not prevent a business from accepting other forms of payment.
The level of effort asked of the consumer to make a cash payment also needs to be reasonable in the circumstances.
Businesses that must follow the codes
The codes apply to certain supermarket and motor fuel retailers.
Supermarket retailers
Supermarket retailers must follow the cash acceptance rules under the code.
A supermarket retailer is a corporation that carries on a supermarket business in Australia.
A supermarket is a business that mainly sells retail grocery goods to consumers. A substantial proportion of the grocery goods is food that is not for in-store consumption.
An exception applies to some small businesses
Some supermarket small business retailers with a turnover of less than $10 million per year are excluded from these rules.
Code requirements may not apply to supermarket retailers that meet the definition of a small business entity. The code uses the definition of ‘small business entity’ as set out in the . The provides several methods for determining if you are a small business entity.
The rules still apply to small business supermarkets using a registered trademark
Supermarket small business retailers that use a registered trademark which is also used by a large supermarket retailer must follow the cash acceptance rules.
Example of a small business supermarket where the code applies
TOP Supermarkets Ltd has an aggregated annual turnover exceeding $10 million. It owns and operates a single ‘TOP’ supermarket in a major urban shopping centre.
TOP Marketing Pty Ltd owns the registered ‘TOP’ trademark.
Around Australia there are:
- 50 small supermarkets that are each in franchise agreements with TOP Supermarkets Ltd, and
- 100 small supermarkets that are each independently owned and operated.
These 150 supermarkets use the ‘TOP’ name and signage under licence from TOP Marketing Pty Ltd. None of them have an aggregated annual turnover exceeding $10 million.
In this example, the cash acceptance mandate applies to all 151 supermarket sites.
The exception for small business does not apply in this example because the small supermarkets use the registered trademark of the larger business, which has an annual turnover exceeding $10 million.
Motor fuel retailers
Motor fuel retailers must follow the cash acceptance rules under the code.
A motor fuel retailer is a corporation that carries on a motor fuel business.
A motor fuel business is defined as a business that involves the retail sale of motor fuel.
An exception applies to some small business fuel retailers
Some small business fuel retailers with a turnover of less than $10 million per year are excluded from these rules.
Code requirements may not apply to fuel retailers that meet the definition of a small business entity. The code uses the definition of ‘small business entity’ as set out in the . The provides several methods for determining if you are a small business entity.
The rules still apply to small business fuel retailers that use a registered trademark
The rules apply to small business fuel retailers that use a registered trademark which is also used by a large fuel retailer.
Example of a small business fuel retailer where the code applies
ABC Fuel Ltd has an aggregated annual turnover exceeding $10 million. It owns and operates 4 large fuel stations along the Hume highway.
ABC Fuels Pty Ltd owns the registered ‘ABC Fuel’ trademark.
There are 10 small independent petrol stations around Australia that use the ‘ABC Fuel’ name and signage. None of them have an aggregated annual turnover exceeding $10 million.
All of them use the ‘ABC Fuel’ name and signage under licence from ABC Fuels Pty Ltd.
In this example, the cash mandate and rules apply to all fuel sites because they are using the ABC Fuel name and signage, regardless of their turnover.
The exception for small business does not apply in this example as the smaller fuel retailers use the registered trademark of the larger business, which has an annual turnover exceeding $10 million.
An exception applies to fuel retailers not routinely supplying automotive unleaded petrol
An exception applies to motor fuel retail sites where automotive unleaded petrol is not routinely supplied for retail customers.
This exception aims to provide relief for motor fuel retail sites where the main service or business activity is to supply diesel for trucks.
These sites are usually in regional and remote areas and often operate unattended using digital payments.
This exception makes sure that the business owners of these sites are not required to set up cash payment points and secure transport for cash over long distances, where they are unlikely to be used by retail consumers.
Example of a fuel retail site where the code doesn’t apply
123 Fuels Pty Ltd has an aggregated annual turnover exceeding $10 million. It owns and operates diesel fuel stations along major national highways.
Some 123 Fuel stations have customer service attendants, but many are not staffed and operate using digital payment only.
123 Fuel stations supply diesel for long distance transport trucks and do not sell retail unleaded petrol to members of the public.
In this example, the code doesn’t apply to the 123 Fuel stations. This is due to the exception for fuel retail sites that don’t routinely sell retail unleaded petrol.
If you’re unsure whether the codes apply to your business
Be prepared with cash on hand
Businesses unsure if the codes apply can keep sufficient cash on hand. This allows you to provide change to customers who make in-person payments of $500 or less, between the hours of 7 am and 9 pm.
Complying with the codes means you may need to consider:
- establishing or re-establishing cash floats and tills
- setting up bank deposits and reconciliation procedures
- training your staff to handle cash.
Check if the codes apply to your business
If your business does not sell groceries or motor fuel the codes do not apply to you.
The codes apply to your business if:
- you are a supermarket retailer or a motor fuel retailer, and
- your annual turnover is more than $10 million or your business uses a registered trademark used by another business that is captured by the codes.
If you are unsure, consider your circumstances, including seeking legal advice if appropriate.
If the codes apply to you, you must make sure customers have a reasonable opportunity to make an in-person cash payment of $500 or less between 7 am and 9 pm.
In certain circumstances you can apply for an exemption from the obligation under the codes to accept cash payments.