Vending

Regulation creep: 5 policy issues vending operators should watch in 2026

Taken individually, none of the policy issues is likely to upend the vending industry overnight. Taken together, though, they can reshape the economics of vending and unattended retail.

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February 13, 2026 by Richard Slawsky

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If government regulation isn't already top of mind for operators of vending routes, it probably should be. As the unattended retail industry expands, public opinion changes, and technology advances, the likelihood of new regulations being enacted increases.

A city adopts a cash-acceptance ordinance, a state tightens rules around what can be sold in public spaces or a politician proposes legislation focused on credit card processing, and suddenly an operator's business model shifts beneath their feet.

Below are five areas of pending or proposed legislation that could affect vending machine operators' costs, product mix and compliance efforts this year, especially for those serving public venues, school campuses and healthcare facilities.

Cash-acceptance mandates

It's well known that the use of cash is on the decline, and many of us haven't had a $5 bill in our wallets for years. Still, a large segment of the population uses cash exclusively. To ensure those people can access the same goods and services as the card-dependent population, many municipalities are implementing laws requiring businesses to continue accepting cash.

New York City's cashless ban, for example, prohibits most retail establishments from refusing cash payments and includes enforcement provisions and pricing parity rules. Retail definitions in the state have generally included vending and unattended machines that sell goods directly to consumers.

On the other side of the country, San Francisco's 2019 cashless-retail prohibition law, requiring most brick-and-mortar businesses to accept U.S. currency as payment, remains in effect. Although the law does not explicitly mention vending machines, it's probably safe to assume that any cashless vending machine could be considered non-compliant.

At the federal level, the Payment Choice Act of 2025 is under consideration in Congress. It would require covered retail businesses to accept cash for on-site sales up to $500 and prohibit charging cash customers a higher price. Vending machines aren't named explicitly, but they are physical points of sale where in-person transactions occur. The legislation is still pending.

What it means for vending: operators with cashless-only machines should assume that some venues. especially in public-sector locations, may need to outfit those devices to accept cash.

Swipe-fee and routing legislation

For many operators, card acceptance has become a requirement of their business, and processing costs are now a key component of their budget. The Credit Card Competition Act would require large banks to enable additional routing/network options for credit card transactions, with supporters arguing it brings competition to a market dominated by the big card networks.

The Merchants Payments Coalition said the CCCA would "force giant credit card companies to compete on swipe fees," arguing that current processing costs place an unfair burden on merchants. The National Small Business Association supports that position, noting that for many small operators, processing fees are their second-highest cost, behind labor. Passing the bill could save U.S. businesses and consumers an estimated $17 billion a year.

On the other hand, the trade group America's Credit Unions warns that Congress should not "mandate the reengineering of the entire credit card payments system." The Act would primarily benefit businesses with more than $500 million in annual sales, they say, and would harm consumers by reducing choice and weakening fraud protections.

What it means for vending: if processing fee reforms pass, it could lower costs but also make a business's relationships with processing service providers more complicated. Either way, the difference of a few cents per transaction can have a significant impact on a vending operator's bottom line, so they need to take every step they can to manage those costs.

Healthy food requirements

Under the USDA's Smart Snacks in School program, foods and beverages sold in school vending machines during the school day must meet specific nutrition standards. The program applies nationwide to all schools participating in federal child nutrition programs.

Many states have adopted similar programs. Washington State's Healthy Nutrition Guidelines, for example, include requirements for foods and beverages sold in vending machines on state property to meet nutrition standards. Additionally, several local governments, universities, hospitals and workplaces have hopped on the healthy vending bandwagon as well.

Additionally, several states are considering proposals that target specific food ingredients, particularly in school settings. Analysts tracking legislative activity reported that food-additive proposals increased in 2025, with more than 140 bills introduced in 38 states. Such legislation could affect both the types of products that vending machines in public spaces can serve as well as the cost of those products.

What it means for vending: Although adopting healthy vending options may open the door to a broader customer base, there may be unintended consequences. Operators may find that healthy options don't sell well or may cost more at wholesale. Removing non-compliant or unprofitable machines from public spaces can negatively affect consumers, especially in venues such as hospitals or law enforcement headquarters, where night workers may depend on those machines to get them through their shifts.

Packaging and chemical bans

Efforts to restrict certain chemicals in food packaging, particularly per- and polyfluoroalkyl substances and other "forever chemicals," have been growing at both the federal and state levels. Most PFAS bans focus on paper and fiber-based food packaging, such as popcorn bags or paper cartons. Canned beverages and products wrapped in plastic aren't generally an issue.

In April 2025, legislators in Congress introduced the PFAS-Free Procurement Act, which would prohibit federal agencies from entering into contracts for numerous products containing such chemicals. There is little indication of when, or even whether, the bill might become law.

Many states have already enacted or are proposing laws prohibiting PFAS. States including Oregon, Vermont, Connecticut, Colorado, Minnesota, Maryland, Hawaii, and Rhode Island all have laws banning PFAS in all or certain types of food packaging materials, with more states slated to implement similar bans in the next few years.

What it means for vending: Vending operators have little control over product packaging, but the current patchwork of laws means that products that may be legal in one state aren't legal in another. Ultimately, those laws may result in some products disappearing from vending machines or costing more at the wholesale level.

Energy efficiency requirements

Vending machines are energy-using appliances, and as governments push to reduce electricity consumption, efficiency standards continue to tighten. At the same time, more machines are incorporating features such as refrigeration and additional peripherals including card readers and Wi-Fi connectivity.

At the federal level, the U.S. Department of Energy has updated energy-conservation standards for commercial refrigeration equipment. At the same time, states with aggressive climate and energy goals, including California, New York and Washington, are increasingly incorporating energy-efficiency expectations into procurement rules for public buildings.

Several states are developing their own appliance and equipment efficiency standards for products that DOE does not already regulate. California, Connecticut, New York, Oregon, Rhode Island, Washington and others have adopted efficiency standards on a variety of residential and commercial appliances.

What it means for vending: even though energy-efficiency rules are not explicitly aimed at vending operators, machines, especially those deployed in public buildings, may be expected to meet higher efficiency standards. Those standards can result in higher capital costs, shorter replacement cycles and reduced availability of replacement parts for legacy machines.

What operators can do

Taken individually, none of these policy issues is likely to upend the vending industry overnight. Taken together, though, they can reshape the economics of vending and unattended retail. For vending operators heading into 2026, the challenge is not simply reacting to new rules as they appear but anticipating how they might affect their operations.

As with most things, there is strength in numbers. Those who stay informed, engage with industry groups, and plan for regulatory change will be better positioned to adapt, while those who don't pay attention to that change may find that the rules have changed before they have a chance to respond.

About Richard Slawsky

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