What Does the Term “Legal Tender” Mean?

By GovMint :

The term "legal tender" refers to currency issued by a government that must be accepted as a means of payment for goods and services within the country's jurisdiction. This designation gives the currency a legally mandated value for settling debts, emphasizing its acceptance as a valid form of payment. While legal tender status ensures the currency's widespread acceptance, it does not necessarily guarantee that all payment types, like checks or credit cards, must be accepted in the same manner.

Sources Used:

https://www.investopedia.com/terms/l/legal-tender.asp