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Alexander Tang

When a tourist tried to pay for a burger in cash at a Tsim Sha Tsui restaurant in 2023, staff refused. The outlet accepted only cards and electronic wallets.
The episode went viral, with debate raging over whether or not this is legal.
After all, Hong Kong bank notes and coins constitute legal tender in Hong Kong under the Legal Tender Notes Issue Ordinance and the Coinage Ordinance, and the concept of legal tender is enshrined in the Basic Law (Article 111). What’s the use of having legal tender if shops can refuse to accept them willy-nilly?
The answer lies in common law’s approach to the concept of legal tender. Rather than compelling acceptance thereof, in most common law jurisdictions, the freedom of contract reigns supreme.
In commercial transactions, both parties may agree their own terms – including which payment methods are accepted. Whether a merchant takes notes, coins, credit cards or other means of electronic payments is a commercial decision. Neither the ordinances nor the common law compel acceptance of any particular form of payment.
If so, does this mean that “legal tender” is a meaningless phrase? The answer, as usual, is nuanced.
In most day-to-day consumer transactions, which are executed contracts in nature (i.e. payment and delivery are simultaneous), it may well be that the concept has little relevance. As noted above, a shop would likely refuse to contract with you in the first place if you are not ready to make payment in a way they are ready to accept.
However, for executory contracts (i.e., delivery comes before payment, whereby the payment obligation becomes a debt), legal tender may have a role in paying.
In lieu of any particular agreement to the contrary, if a person owes another person any debt, offering up legal tender, by way of a payment into court, can constitute a “defence of tender” in law. It does not matter whether the debt is liquidated, or after 2009, unliquidated (under s.30 of the Law Amendment and Reform (Consolidation) Ordinance (Cap. 23)).

Put simply, while paying legal tender into court does not per se compel the creditor to accept such (or extinguish the debt), it effectively blocks the debtor from suing on the debt and thus, in a roundabout way, compels the creditor to accept such payment.
This “weak” form of the concept of legal tender is by no means universal. For example, in mainland China, detailed rules have been promulgated as recently as the 2026 Renminbi Cash (Payments and Services Regulations), which makes clear that entities which receive payments in person or provide face-to-face services must support cash payments.
Macau also treats refusal of acceptance of legal tender as an administrative offence. These jurisdictions thus espouse a “stronger” form of the concept.
The divergence of approach shows that the concept is fluid and is, at the end of the day, a policy choice – the balance being between, on the one hand, the supremacy of freedom of contract and commercial efficiency, with the underlying belief being that the market would determine what means of payment are accepted or refused; and on the other hand, the maintenance of the supremacy of legal tender especially in light of the rise of alternative units of exchange such as cryptocurrencies, and also the protection of consumers’ freedom to choose to pay by legal tender, especially in an ageing society where individuals may lack the skill set to handle complicated electronic payment workflows.
Indeed, the latter concern led Australia, as recently as January 1, 2026, to mandate some supermarkets and fuel retailers (being purveyors of essential goods) to accept cash under the rubric of consumer protection.
No doubt evolving times and societal demands will require constant review as to where the balance is to be struck, and (if necessary) limited inroads be introduced to cater for specific needs.
But lest it be criticised that the current legal position is messy and convoluted, it should not be forgotten that such is actually the product of incrementalism and pragmatism very much characteristic of the common law, which has served commerce in general, and Hong Kong in particular, well for many years.
In this case, there is considerable wisdom in the adage, “if it ain’t broke, don’t fix it”.
Alexander Tang is the current deputy honorary secretary of the Hong Kong Bar Association and a civil and commercial litigator.
Legal Tales is a weekly column by senior members of the Hong Kong Bar Association presenting their perspectives on current affairs.


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Legal tender and electronic payments – can we insist on paying in cash?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Answer lies in common law’s approach to concept of legal tender

Answer lies in common law’s approach to concept of legal tender