New York shoppers will soon face one less barrier at the checkout, as a newly signed law forces merchants to accept cash payments.
Last week, as per the New York State Senate website, Governor Kathy Hochul signed a bill “prohibiting food stores and retail establishments from refusing to accept payment in cash.”
Why It Matters
The covid pandemic accelerated what has long been seen as an inevitable transition toward a cashless society, with both merchants and consumers expressing an increasing preference for touchless payment options. Many businesses have adjusted accordingly with some now even refusing to accept cash as payment, prompting the introduction of this bill, but research shows many Americans, particularly older and lower-income consumers, still rely on cash for their daily transactions, according to The Federal Reserve.
A report from the Atlanta Federal Reserve Bank, published in May, found 83 percent of adults used cash to make a purchase in the previous month. Meanwhile, the American Consumer Institute has highlighted the contemporary benefits of cash transactions for both merchants and customers, citing the avoidance of interchange fees and potential card surcharges, and argued that it serves as an “expression of consumer choice.”
What To Know
Bill A.7929A/S.4153A was introduced in April of this year, sponsored by Democrats James Sanders Jr. in the Senate and Assemblywoman Catalina Cruz. As well as prohibiting establishments from refusing to accept cash, the bill prevents businesses from levying additional fees or surcharges on cash payments compared to cashless transactions…