Albany, NY, November 26, 2025

Governor Kathy Hochul has signed a new law requiring all retail and food-service establishments in New York State to accept cash payments. The legislation aims to protect consumers who may lack access to electronic payment methods. Key provisions include mandatory acceptance with certain exceptions, such as for online transactions, and penalties of up to $5,000 for non-compliance. The law, effective March 30, 2026, encourages inclusivity in payment options and follows similar legislation in New York City.

New York State Enacts Law Requiring Businesses to Accept Cash Payments

Albany, NY — Governor Kathy Hochul has signed into law Bill A.7929A/S.4153A, mandating that all retail and food-service establishments in New York State accept cash payments. This legislation aims to ensure that consumers without access to electronic payment methods can still make purchases.

Key Provisions of the New Law

• Mandatory Cash Acceptance: All retail and food-service businesses must accept cash payments for goods and services.
• Exceptions: Businesses are permitted to refuse cash payments for telephone, mail, or internet-based transactions, unless the payment occurs on the premises.
• Denomination Limits: Establishments may refuse cash bills exceeding $20.
• Prepaid Card Option: Businesses can offer devices that convert cash into prepaid cards, provided they do not charge fees or require minimum deposits over $1.
• Penalties for Non-Compliance: Violations can result in civil penalties up to $2,500 for the first offense and up to $5,000 for each subsequent violation.

Background and Legislative Journey

The bill was introduced in the New York State Assembly as A.7929A and in the Senate as S.4153A. It passed both legislative bodies and was presented to Governor Hochul for approval. The legislation addresses concerns that cashless policies disproportionately affect unbanked and underbanked individuals, limiting their ability to participate fully in the economy.

Implementation Timeline

The law is set to take effect on March 30, 2026, providing businesses with time to adjust their payment systems and ensure compliance. The Department of Labor is tasked with promulgating rules necessary to implement and enforce this section.

Impact on New York Businesses

Businesses across New York State will need to update their payment policies and systems to accommodate cash transactions. This may involve training staff, updating point-of-sale systems, and ensuring that cash is handled securely. The law aims to promote inclusivity and ensure that all consumers have equal access to goods and services, regardless of their preferred payment method.

Related Legislation in New York City

New York City has previously enacted similar legislation. In January 2020, the New York City Council passed a law prohibiting food stores and retail establishments from refusing to accept payment in cash. This local law also imposed penalties for non-compliance and included certain exceptions, such as allowing businesses to refuse cash payments for telephone, mail, or internet-based transactions, unless the payment occurs on the premises.

Conclusion

The new state law reflects a growing recognition of the need to accommodate diverse payment preferences and ensure that all consumers have equal access to goods and services. Businesses are encouraged to review their payment policies and prepare for the upcoming changes to remain compliant and serve their customers effectively.

FAQ

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Key Features of the New Law

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