I Was Told I Could Cash a Money Order Check

[Thud-n-Blunder]

I can somewhat sympathize...

... I ended up getting an AmEx gift check for a bonus at work. I went to the local grocery store a couple days later, and I tried to pay for some groceries with it so I could also get the change. Signed it in front of them, went through everything that went with cashing a traveler's check... and the cashier had trouble tendering it.

A manager got called, and I was informed that they don't accept traveler's checks.

Surprised? Yes. Annoyed? Somewhat, but the manager was citing company policy, so I couldn't gripe much... so I took the check back, paid for the groceries with another method, and took it to my bank. They didn't have too much trouble with cashing it.

The only thing that a merchant is legally obligated to accept for a transaction is legal tender. Anything else is a courtesy, not a right.

[Ironclad Alibi]

The only thing that a merchant is legally obligated to accept for a transaction is legal tender. Anything else is a courtesy, not a right.

Not so in the US. The quote below is from the US Treasury web site.

Legal Tender Status

I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?

The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.