Postage Stamps as Legal Tender

Dickster_2

Both Costco and Superdrug sell postage stamps at less than their face value.

I was always under the impression that stamps are legal tender so what is to stop you buying £1,000s of stamps at Costco and then paying them straight into your bank account, making an immediate 5%, or so, profit?

Richard

Spork

I don't think so - only coins (in denominations up to a certain amount) and Bank of England notes are legal tender in England & Wales. The bank may choose to accept them (would be nice!) but are not legally obliged to.

dmg24

Spork you are incorrect. Postage stamps are legal tender. Indeed, when I worked at Boots ten years ago we were allowed to accept them (though no one ever offered me them!).

The issue is more that a shop can (within reason) choose who to sell to, and therefore can decline to take payment given in any form.

Spork

If Boots want to accept them, that's up to them - but only notes and coins are 'legal tender' (i.e. they cannot be refused in settlement of debt) but I doubt that applies in this case. OP can try and pay them straight in to his account!

JohalaReewi

I doubt that the bank will accept the stamps bought from costco because these will be generic 1st or 2nd class stamps and won't have a value printed on them.

JohalaReewi

dmg24 wrote: »

Spork you are incorrect. Postage stamps are legal tender. Indeed, when I worked at Boots ten years ago we were allowed to accept them (though no one ever offered me them!).

In the UK 'legal tender' has a very specific meaning and basically covers banknotes and coins. In this strict use of legal tender, postage stamps are not included (nor are cheques, postal orders, etc., etc.) See
http://www.royalmint.gov.uk/Corporate/BritishCoinage/LegalTenderGuidelines.aspx

However, there is nothing to stop someone accepting postage stamps as a method of payment if they so wish. Obviously, Boots used to do this (and may still do). The converse is also true in that there is nothing to stop anyone refusing to accept payment in a certain way if they so wish (eg. banknotes and coins) because when you shop, you are not settling a court debt so the retailer does not legally have to accept cash from you.

dmg24

Sorry JohalaReewi, I should have picked my terminology more careful. Postage stamps can be used as legal consideration for goods (even that isn't the best word, as pretty much anything can be used as consideration!) x

lamb7994

Boots don't take them anymore. Asked my mum and she thought i was mad!

J

dzug

You can't pay stamps into a bank account, and never have been able to. They are not repeat not 'legal tender' in any sense, either the strict legal one or the more fuzzy meaning in general misuse. A shop MAY take them as cash, but I don't know of any that do, and they are not obliged to. Unless they can use them or resell them they will be making a loss if they do.
The Post Office doesn't take them either - other than on stamped letters. If you've bought too many they will buy them back (centrally, not at your local one) and charge you something like 10% of the face value for doing so.

mikewebs

I don't know if this is still the case but you used to be able to pay a postal order with stamps affixed into a bank account so, technically, the stamps were legal tender. I am sure someone here will prove me wrong though lol

geordie_joe

mikewebs wrote: »

I don't know if this is still the case but you used to be able to pay a postal order with stamps affixed into a bank account so, technically, the stamps were legal tender. I am sure someone here will prove me wrong though lol

Yes, postal orders come in certain denominations and you can add stamps to increase the value. i.e to get a £1.20p PO you get a £1 PO and put 20p worth of stamps on it.

However, when you pay them into the bank they are more like a cheque than money. The difference being you already paid they money to the Post Office for the postal order so it can't bounce.

Back in the 70's and 80's quite a few places would take stamps as payment. I used to deal with several astronomy shops that took stamps as payment. This was because almost all of their customers were mail order, so they used a lot of stamps. I liked it as I didn't have plastic in those days and cheques took 7 days to clear. When you paid with stamps the goods were sent the same day. Much cheaper than postal orders.

Slightly off topic, but are their any Geordies that remember sheppards money?