Why retailers are not allowed to refuse 'old’ banknotes

In spite of the rise of the digital economy, a lot of people in South Africa still use cash to pay for goods and services.

Across all sectors, hard cash accounts for more than half of the total number of transactions in the country, says Wendy Knowler.

But have you ever had the experience where you hand over your money and the assistant refuses it, saying "we don't take old notes"?

"In 99,99% of cases that response is misinformed and illegal", Knowler says.

She points out that all banknotes (and most coins) issued by the South African Reserve Bank (SARB) since 1961 remain legal tender, with only one exception. This is a specific pre-2005 series R200 note withdrawn in 2010 because of high-quality counterfeits.

"Everything else, from R10s to R200s in later series, even if printed decades ago, must be accepted if it's in good condition."

Knowler says it's the recall of that R200 series in 2010 that led to the misconception that banks don't accept any "old" notes.

"The problem is that some people are not good with nuance - it's black or white for them, so many retailers and their staff began applying this one-note withdrawal thing to assume that all older-looking notes were somehow now invalid and not legal tender, and that myth persists 15 years later."

Knowler took up the case of a consumer who had a banknote refused when she was buying groceries at a Home Essentials store at Glen Balad Mall in Kempton Park.

"She handed over a R100 note and a R50 note that she says was a bit older but in perfect condition - no tears, no stains. But the cashier called the supervisor who flat out refused the R50, saying management had instructed them not to accept so-called 'old' notes, because the banks supposedly do not take them anymore."

While she knew this was wrong, the woman took out another note because she didn't want to hold up the queue. She found the whole experience humiliating and vowed never to shop there again.

When Knowler took up the case with Home Essentials director Paul Killian, she was able to dismiss any claims of damage to the note in question, as she'd seen a picture of it.

Killian then came back with what the consumer journo says is a great response - He acknowledged a mistake, apologised unreservedly to the shopper and offered her a full refund for the purchase.

Importantly, says Knowler, he committed to enrolling his staff in a free online "know your money" course offered by the SARB, which covers this ground.

If you're caught in a situation like this at the till, she advises that you say something like "I understand there's a lot of misconception around this but trust me, this note is legal tender".

If they still refuse, ask to see the most senior person there. If that doesn't succeed either, take a photo of the note in question and get the store's refusal on record, along with noting details like the time and date and report it to the SARB or a consumer journalist.

If you're active on social media, also post it here, Knowler urges.

"It's all about educating people that this is a poor practice that should not still be happening in 2026."

Scroll up to the audio player to hear more detail (skip to 1:45)