Not everywhere. No US federal law requires a private business to accept cash, but California requires you to allow at least one method that is neither cash nor an electronic funds transfer. Ontario bars requiring automatic debit or post-dated cheques. British Columbia requires a receipt for cash rent.
Is There a Federal Cash Rule?
Nothing forcing you to take it. The Federal Reserve's currency FAQ (last updated July 21, 2020) states plainly: "There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services." Businesses may set their own cash policies, it adds, "unless there is a state law that says otherwise" (this post's subject). The legal-tender provision at 31 U.S.C. 5103 makes US currency a valid offer of payment for debts; it does not oblige a landlord to build a cash-friendly process. The binding limits are state and provincial.
What Does California Require?
California is the clearest no. Under Civil Code 1947.3(a)(1), a landlord or agent "shall allow a tenant to pay rent and deposit of security by at least one form of payment that is neither cash nor electronic funds transfer." Read that with subdivision (d), which defines electronic funds transfer to include automated clearinghouse transfers, telephone-initiated transfers, and transfers authorized in advance to recur at regular intervals, so a portal debit is an EFT and cannot be the only door. A paper path stays open: cheque or money order. Three more rules: (b) bars a fee for paying by cheque; (a)(3) requires you to take a third party's payment once they sign an acknowledgment they are not a tenant; (f) voids any waiver. The one cash-only exception, in (a)(2), follows a bounced cheque or stop-payment: three months maximum, with written notice attaching the instrument. Current since January 2025.
What Do Ontario and British Columbia Say?
Ontario targets the mandate itself. Section 108 of the Residential Tenancies Act, 2006 says neither a landlord nor a tenancy agreement shall require a tenant or prospective tenant to "provide post-dated cheques or other negotiable instruments for payment of rent" or to "permit automatic debiting of the tenant's or prospective tenant's account at a financial institution, automatic charging of a credit card or any other form of automatic payment for the payment of rent." Note the scope: it bars requiring those arrangements. It says nothing about a tenant choosing a portal, and never names online payment. Section 109(1) adds a free receipt on request. And since 134(1)(a) bars unprescribed charges, check any card convenience fee against O. Reg. 516/06, section 17. Processing fees are absent from it.
British Columbia is lighter but not silent. Section 26(2) of the Residential Tenancy Act requires a receipt for cash rent, presuming cash may appear. The Residential Tenancy Regulation, section 7, caps payment fees at $25 for a returned cheque or late rent, and only where the tenancy agreement provides for it.
| Jurisdiction | Rule on payment methods | Source read |
|---|---|---|
| US federal | No statute requires a private business to accept cash; state law may | Federal Reserve FAQ; 31 U.S.C. 5103 |
| California | At least one method that is neither cash nor EFT; no cheque fee; third-party payments on a signed acknowledgment | Civ. Code 1947.3(a), (b), (d) |
| Ontario | Cannot require post-dated cheques or automatic payment; free receipt on request | RTA 108, 109(1) |
| British Columbia | Receipt for cash rent; $25 NSF or late fee only if the agreement says so | RTA 26(2); Reg. 477/2003 s.7 |
So Can You Go Online-Only?
In California, no: a portal debit is an electronic funds transfer, so a non-cash, non-EFT option stays available. In Ontario you can offer a portal and even prefer it, but pre-authorized debit and post-dated cheques cannot be a condition of the tenancy. Elsewhere, read your statute before switching off the cheque. This is information, not legal advice: rules change and vary by municipality. LetHub's side of this is leasing, not rent collection: inquiries answered in about 30 seconds by text, chat or phone, ID-verified showings booked. Book a demo if that is the part you want handled.
Frequently Asked Questions
Can a landlord require tenants to pay rent online?
It depends where. California's Civil Code 1947.3(a)(1) requires at least one payment form that is neither cash nor an electronic funds transfer, so online-only is unavailable there. Ontario bars requiring automatic payment but not offering a portal. No federal US rule forces cash acceptance.
Can a California landlord refuse cheques?
Yes, provided one accepted method is neither cash nor an electronic funds transfer. A money order or cashier's cheque will do. Civil Code 1947.3(a)(1) requires the landlord to allow one such form, and the landlord picks which. Accept cheques and subdivision (b) bars a fee for one.
Can an Ontario landlord require pre-authorized debit?
No. Section 108 of the Residential Tenancies Act, 2006 says neither the landlord nor the tenancy agreement may require a tenant or prospective tenant to permit automatic debiting, automatic credit-card charging, or any other automatic rent payment, nor to provide post-dated cheques.
Do you have to give a receipt for rent?
In Ontario, yes on request: section 109(1) requires a free receipt for rent, a rent deposit, arrears or any other amount paid. In British Columbia, section 26(2) requires one whenever rent is paid in cash. Other jurisdictions vary, so check your own statute.
