A vendor in Suzhou refused my cash. I reminded him it's illegal. He took it.

ChinaTravelMemo

My friend from France was in Suzhou. She tried to buy a bottle of water with a ¥10 note.

The vendor waved his hand. "No cash. QR code only."

She had Alipay but her phone was dead. She had cash. He refused.

The law:

On February 1, 2026, China's central bank enforced strict penalties for merchants refusing physical RMB. It's illegal to reject cash.

She pulled up the official announcement on her friend's phone and showed him.

"RMB is legal tender. Refusing it is against the law."

He grumbled. Took the ¥10. Gave her change.

The reality:

Most vendors PREFER mobile payment. It's faster. No change to handle. No fake bills to worry about.

But some — especially elderly vendors, small rural shops, and tourists in remote areas — ONLY take cash.

And some young vendors have never handled cash transactions and genuinely don't know how to make change.

When you need cash in China:

Always useful:
• Small street stalls in old neighborhoods
• Rural areas and small towns
• Public buses in some cities
• Temple donations
• Taxi drivers who don't use QR (rare but exists)

Rarely needed:
• Major cities (Shanghai, Beijing, Shenzhen)
• Chain stores and restaurants
• High-speed rail and metro
• Hotels

Tips:

• Carry ¥200-500 in small bills (¥10, ¥20, ¥50).
• ¥100 bills can be hard to break at small stalls.
• Coins are rarely used. Almost everything is rounded to whole yuan.
• If a vendor refuses cash, politely remind them it's illegal. Most will comply.
• ATMs dispense ¥100 bills. Break them at convenience stores or McDonald's.

My friend's take:

"I love mobile payment. But my phone dies. My battery fails. My app crashes. Cash is my insurance policy. And in China, it's my legal right to use it."

Anyone else had a vendor refuse cash? How did you handle it?