Reason behind Wetherspoons' cash payment ban that impacts millions

Wetherspoons has sparked controversy after confirming it no longer accepts £20 and £50 Scottish banknotes in its English pubs - a move which has frustrated Scottish customers.

The rule to ban Scottish £20 notes came into practice back in 2024, but many customers have been unaware of it until attempting to use one of these notes to purchase food and drink in any of the 800 Wetherspoons pubs in England. Now, the same rule will be extended to include Scottish £50 notes too.

Several customers have complained of feeling 'humiliated' or 'embarrassed' after being refused service when trying to pay using the Scottish notes.

While many Scots have voiced their frustrations, the decision not to accept these particular notes follows a warning from the Bank of England regarding counterfeit notes.

A large number of fake Scottish £20 and £50 notes are in circulation (Simon Dawson/Bloomberg via Getty Images)

The bank notified businesses that organised crime gangs had put a large number of fake Scottish notes into circulation, according to Wetherspoons spokesperson Eddie Gershon.

"Advice was given as to how to identify them - but with a warning not to accept if in doubt," he said in a statement.

"This warning, coupled with an increase in the receipt of fake notes by pubs, led to a decision in late November last year not to accept Scottish £20 notes. This does not apply in Scotland and certain towns and cities with close links to Scotland."

Gershon added: "Scottish £50 notes are not accepted for the same reason. We will continue to keep the decision under review."

The government has now weighed in on the subject after Liberal Democrats MP Angus MacDonald questioned whether the cabinet had any discussions over the pub chain's decision to ban the notes.

In response, treasury minister Lucy Rigby said there was 'no legal requirement' for businesses to accept any specific form of payment.

Some customers say they've been 'humiliated' and turned away with Scottish notes (Chris Ratcliffe/Bloomberg via Getty Images)

"Each business decides which payment methods to accept based on factors including cost and customer needs and preferences," she continued, adding that the government has 'no plans' to amend legislation on the matter.

Instead, the Labour MP highlighted a recent change that had been made to the laws around the availability of cash.

"In recognition that millions of people continue to use cash, the Financial Services and Markets Act 2023 introduced safeguards to protect the public's access to cash," she said.

"The UK is unusual in allowing several commercial banks to issue their own banknotes. As well as Bank of England issued notes, authorised banks in Scotland and Northern Ireland issue banknotes in those jurisdictions.

"However, it remains the individual retailer's choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost."