NY Stores Must Now Accept Cash, AG James Reminds Consumers

Novel Yorkers are now guaranteed the right to pay with cash at most businesses, following the statewide implementation of a new law on Saturday, March 21st. New York Attorney General Letitia James reminded residents Friday of the change, and invited those who encounter violations to file a complaint with her office.

“Businesses cannot deny New Yorkers access to necessities like food and clothing by refusing to take cash, or charging shoppers more for paying in cash,” James stated in a consumer alert. “I will not hesitate to enforce this law to protect consumers across our state.”

The law, which mirrors a similar regulation already in effect in New York City since 2020, prohibits retail establishments, including food stores, from mandating credit card or other cashless payment methods. It also prevents businesses from imposing additional charges on customers who choose to pay with cash.

Penalties for violations range up to $1,000 for a first offense and $1,500 for subsequent infractions, according to the Attorney General’s office.

The law includes several exceptions. Businesses are not required to accept bills exceeding $20. Transactions conducted via telephone, mail, or internet are exempt, unless completed in person at a store location. Stores may offer cash-to-prepaid card conversion devices, provided no fees are charged and the minimum load requirement does not exceed $1.

The legislation addresses concerns raised by advocates regarding access to goods and services for individuals without bank accounts. Backers of similar measures have argued that cashless policies can discriminate against the unbanked and raise privacy and data security concerns, according to a 2019 report by PYMNTS.

However, critics contend that electronic payments streamline transactions, reduce the logistical burdens of cash handling, and minimize the risk of robbery and theft.

Governor Kathy Hochul signed the statewide bill into law in November 2023, following its passage by the state Legislature in May of the same year. Similar laws were already in place in New Jersey and Colorado at the time, Newsweek reported. The New York City Council initially passed a ban on cashless stores in January 2020, which took effect later that year.

By November 2021, New York City had issued a total of $23,850 in fines to 16 businesses found to be in violation of the city’s cash acceptance law.