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Email this12:52 pm
September 20, 2016
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Is it time to start getting rid of actual cash?
https://www.cbc.ca/news/canada/montreal/laurentian-bank-wont-take-customers-800-dollars-in-coins-1.5284469
2:48 pm
October 27, 2013
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It is not surprising bank branches are moving to cashless tellers, never mind just not accepting rolls of coins at all, never mind large sums in coins. I suspect the transition will be quite location specific, e.g. demographics and nature of the foot traffic. Paper bills are readily available via ABMs.
In the case of Laurentian, which has made a strategic move to eliminate physical handling of money altogether in-branch, I have no doubt their profits will go up. The customers they lose are the ones they most likely want to lose!
Anecdote: I was surprised when BNS finally renovated their very tired local branch that they still included 3 teller stations in the layout, albeit only 1 or 2 appear to be staffed. That said, I suspect their demographic is quite senior and seniors are notoriously slow to make the transition to online banking, PAD, etc. The last time I was in the branch I actually saw a senior paying utility type bills at the teller station!!!
We are not ready for a total cashless society but I think we should be ready for a relatively coinless society, especially any coin less than a loonie. I've moved on to smartphone apps for street/lot parking, and Tap and Go for all other minor purchases. When it comes to cash, car washes are loonie/toonie based, laundromats, etc. There seems to be NOTHING for which anything under $1 is necessary any more. Why do we still have nickels, dimes and quarters? I don't carry any of those in my pocket.
Added: While I am on the subject, here is an article on how much is accepted in legal tender https://canadiancoinnews.com/legal-tender-coins-cant-always-be-spent/ As I understand it, one conventional roll for that denomination of coin.
And for interest, here are the paper bills being removed from legal tender status effective Jan 1 2021 https://www.bankofcanada.ca/banknotes/upcoming-changes-to-legal-tender-status-for-older-bank-notes/
Corrected: Last link
7:46 pm
April 6, 2013
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$800 of coins is not legal tender!
The exact limits for coins are in subsections 8(2) and 8(2.1) of the Currency Act:
Limitation
8(2) A tender of payment in coins referred to in subsection (1) is a legal tender for no more than the following amounts for the following denominations of coins:
(a) forty dollars if the denomination is two dollars or greater but does not exceed ten dollars;
(b) twenty-five dollars if the denomination is one dollar;
(c) ten dollars if the denomination is ten cents or greater but less than one dollar;
(d) five dollars if the denomination is five cents; and
(e) twenty-five cents if the denomination is one cent.
Coins of denominations greater than ten dollars
8(2.1) In the case of coins of a denomination greater than ten dollars, a tender of payment referred to in subsection (1) may consist of not more than one coin, and the tender of payment is a legal tender for no more than the value of a single coin of that denomination.
7:57 pm
April 6, 2013
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Why doesn't the Montreal man in the CBC story just spend the coins doing split tendering?
For example, if the groceries at Metro total $42.30, one could give the cashier ten loonies first and ask that the remaining $32.30 be charged to credit card or debit card.
8:05 pm
December 12, 2009
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Right, but Norman, remember, banks are normally still obliged to take back money that's not legal tender (including outmoded $25 and $1000 notes that the Bank of Canada recently removed "legal tender" status to). Legal tender just means it's not a medium of exchange, but it's original value can still be redeeemed through the Bank of Canada or its agents (the Canadian banks).
That said, I'm not surprised by this and, while a "bank," I don't know that Laurentian Bank is obligated to take back cash since they've notionally removed cash services from their branches. They're a bank, but aren't offering cash services.
There's the CBC for ya, making a mountain out of a non-existent molehill. 😉
I predict we're moving in the direction of a cashless society (I didn't believe this a few years ago). Cash-strapped governments and central banks will move aggressively, and already are with real-time payments system improvements in the works, to continue to demise certain notes such that by 2050, paper money will be non-existent.
Cheers,
Doug
5:07 am
November 8, 2018
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Norman1 said
Why doesn't the Montreal man in the CBC story just doesn't spend the coins doing split tendering?For example, if the groceries at Metro total $42.30, one could give the cashier ten loonies first and ask that the remaining $32.30 be charged to credit card or debit card. Â
Where I live, this is non-issue at all.
At Metro where I buy groceries, there are self-serve checkouts. Also, at Home Depot nearby. Once, when I decided to finally get rid of all coins that collected over years in my house, I took them all to Home Depot (or was it Metro) when I had to buy something there, and patiently fed machine with nickels, dimes and quarters. Few loonies and toonies as well.
Took me time to complete purchase, but nobody did mind because it were off-peak hours and there were plenty idle checkouts.
Machine didn't mind I paid over $50 in coins, and I was pleasantly surprised it has large enough coin storage to take them all from me.
I also got back very, very long printed receipt, because checkout itemized every coin I deposited and printed its denomination in a separate line.
7:13 am
April 6, 2013
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Alexandre said
…
I also got back very, very long printed receipt, because checkout itemized every coin I deposited and printed its denomination in a separate line.
That's funny! 
I have used a more gradual approach. If I had 45¢ of change to use up, I would pump $20.45 at a self-serve gas station, instead of an even $20, to spend the change.
9:03 am
February 17, 2013
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Norman1 said
$800 of coins is not legal tender!The exact limits for coins are in subsections 8(2) and 8(2.1) of the Currency Act:
Limitation
8(2) A tender of payment in coins referred to in subsection (1) is a legal tender for no more than the following amounts for the following denominations of coins:
(a) forty dollars if the denomination is two dollars or greater but does not exceed ten dollars;
(b) twenty-five dollars if the denomination is one dollar;
(c) ten dollars if the denomination is ten cents or greater but less than one dollar;
(d) five dollars if the denomination is five cents; and
(e) twenty-five cents if the denomination is one cent.
Coins of denominations greater than ten dollars
8(2.1) In the case of coins of a denomination greater than ten dollars, a tender of payment referred to in subsection (1) may consist of not more than one coin, and the tender of payment is a legal tender for no more than the value of a single coin of that denomination.
 Â
A bank can refuse legal tender? I was under the impression that part of the currency act was for purchases from retailers so they wouldn't have to sort and count bags full of coins from customers.
I walk into my bank with couple hundred bux worth of coins sorted and rolled and they refuse, we'd have a problem. I usually take them into Coast Cap every couple of years without incident. Probably less often now that I rarely use cash.
6:07 pm
April 6, 2013
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I think the Currency Act prescribes some defaults when contracts and instruments don't specify certain things exactly.
For example, a contract that specifies $100. Under section 13, that $100 is one hundred Canadian dollars for all contracts, starting October 15, 1952, unless the contract specifies another kind of dollars explicitly:
Contracts, etc.
13 (1) Every contract, sale, payment, bill, note, instrument and security for money and every transaction, dealing, matter and thing relating to money or involving the payment of or the liability to pay money shall be made, executed, entered into, done or carried out in the currency of Canada, unless it is made, executed, entered into, done or carried out in
(a) the currency of a country other than Canada; or
(b) a unit of account that is defined in terms of the currencies of two or more countries.
Previous contracts, etc.
(2) Notwithstanding subsection (1), every contract, sale, payment, bill, note, instrument and security for money and every transaction, dealing, matter and thing relating to money or involving the liability to pay money that was made, executed or entered into, done or carried out before October 15, 1952 shall, in so far as anything remained or remains to be or may be executed, done or carried out thereunder on or after that date, be construed and operate without reference to this Act.
I don't think the act compels anyone to accept what is "legal tender" under the act as payment. If I enter into an agreement to pay $100,000 and to pay the $100,000 by wire transfer, I can't fulfill the agreement by instead paying with a suitcase of one thousand current $100 Canadian notes, even though those notes are legal tender under the act.
Yes, a bank can refuse to accept legal tender for deposit. EQ Bank does under its EQ Bank Savings Plus Account Agreement:
… We will not accept cash for deposit and will not be responsible for funds lost in transit or in standard mail. Travellers cheques will not be accepted and we will not accept cheques payable in U.S. dollars or other foreign currencies.
We will not accept wire transfer deposits.
…
9:14 pm
October 27, 2013
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My understanding is a bank does not have to offer cash services, though most did until the fintech revolution with online digital banking.
I am pretty sure the big 5 would now prefer to drop their cash services, except possibly to those who also purchase other financial services, such as investment advice or commercial lending, through their branches. Cash services on their own have to be a 'loss leader' at best.
8:13 am
April 6, 2013
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It could be convenient for a bank to accept some cash for deposits. But, a bank isn't required to accept deposits of cash in order to cash government cheques. It is up to the bank how it sources its cash.
Bank Act subsection 627.01(1) only includes disbursing of cash in the definition of a retail deposit-taking branch:
retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (succursale de dépôt de détail)
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