New York Legislation Mandates Cash Payments in Retail Stores

News Summary

The New York State Legislature has passed a significant bill requiring food stores and retail establishments to accept cash payments. Sponsored by Senator James Sanders and Assembly Member Catalina Cruz, the bill aims to protect vulnerable populations, including low-income individuals and the elderly, who rely on cash for transactions. It outlines civil penalties for noncompliance, with fines increasing for repeat offenses. If signed into law, New York will join other jurisdictions advocating for cash accessibility amidst a growing trend towards cashless transactions.

New York – On May 29, 2025, the New York State Legislature took a significant step in promoting financial inclusivity by passing a bill that mandates food stores and retail establishments to accept cash payments. The legislation, which received approval from both the Senate and Assembly, is now poised for review and possible signing by Governor Kathy Hochul.

The bill, sponsored by State Senator James Sanders and Assembly Member Catalina Cruz, both Democrats, aims to protect vulnerable populations such as low-income individuals, the unbanked, and the elderly. These groups predominantly rely on cash for their daily transactions. Proponents of the bill argue that cashless policies could effectively exclude these populations from making necessary purchases, thus undermining their economic participation.

The legislation outlines civil penalties for noncompliance. Retailers that refuse to accept cash payments will face fines of up to $1,000 for the first violation, and this amount increases to $1,500 for subsequent infractions. Notably, the bill specifies that “food stores” fall under this requirement, ensuring that essential grocery shopping remains accessible to all consumers, regardless of their banking status.

While the bill has received considerable support from Democratic lawmakers, some Republicans also backed the initiative. A spokesperson for Governor Hochul has yet to comment on her position regarding the bill. If signed into law, New York will join a growing list of jurisdictions that have enacted similar regulations to safeguard cash payments, including New Jersey, San Francisco, Philadelphia, and Washington, D.C.

In New York City, a prior ordinance established in 2020 already prohibits cashless stores and imposes fines for businesses that violate this rule. This previous legislation reflects a broader trend in urban areas toward accepting cash, particularly in a landscape increasingly dominated by cashless transactions.

According to data from the National ATM Council, there are compelling reasons to maintain cash transactions. The organization emphasizes the crucial role of cash in emergencies and its importance in protecting consumer privacy. A significant number of households in New York City, particularly among Black (10.9%) and Hispanic (14.5%) communities, are reported to be unbanked, further underscoring the necessity of accessible cash payment options.

Cruz expressed that the bill is designed to ensure that everyone has access to essential goods without the reliance on credit cards or digital payment platforms. Other lawmakers have emphasized that the legislation is a step toward fairness and greater inclusion in economic activities, allowing all consumers the ability to transact freely.

The introduction of this bill aligns with ongoing national discussions about the impacts of digital payment systems, particularly on consumers without bank accounts. Senator Sanders has been actively engaged in addressing issues around payment systems, including past measures concerning the buy now, pay later industry, indicating a continued focus on safeguarding consumer options in financial transactions.

As the landscape of retail and transaction methods evolves, this legislation reflects growing concerns among legislators about the implications of a cashless society and serves as a reminder of the importance of accessibility in the economy. The emphasis on cash payments is not merely about comfort; it underscores a fundamental right to participate in the marketplace without the barriers imposed by technological reliance.

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