Blog

NYC Council Requires Retailers To Accept Cash Bans Noncash Charge

NEW YORK CITY -- The City Council has passed a bill that will prevent local retail businesses from refusing to accept cash, or levying a surcharge on cash transactions. Noncompliant retailers could face fines up to $1,000 for the first offense and $1,500 for continued violations. The measure was introduced by Councilmember Richie Torres. Mayor DeBlasio is expected to sign it into law, after which it would take effect within nine months. The rule exempts businesses offering machines that accept cash with...

January 25, 2020 by Tim Sanford

NEW YORK CITY -- The City Council has passed a bill that will prevent local retail businesses from refusing to accept cash, or levying a surcharge on cash transactions. Noncompliant retailers could face fines up to $1,000 for the first offense and $1,500 for continued violations.

The measure was introduced by Councilmember Richie Torres. Mayor DeBlasio is expected to sign it into law, after which it would take effect within nine months.

The rule exempts businesses offering machines that accept cash without charging a fee or mandating a minimum deposit, and dispense a card that never expires. "Having the ability to install machines allows businesses to preserve their electronic approach," Council member Torres told CBS News's Megan Cerullo. 

The Retail, Wholesale and Department Store Union hailed the City Council's action. "Forcing customers to use only credit or debit is a discriminatory business model that disadvantages low-income people, people of color, undocumented immigrants and seniors,"said RWDSU president Stuart Appelbaum. "Communities of color in New York City are more than twice as likely to be 'unbanked' and are far less likely to host a branch of a bank than the national average. This critical bill will ensure everyone can shop or eat at any store in our city.

"Thanks to the work of Councilmember Torres and the entire New York City Council, this growing exclusionary practice will no longer be permitted in our city,"  Appelbaum applauded.

The union, which is affiliated with the United Food and Commercial Workers Union, represents 100,000 members throughout the United States.

Other cities and states have similar laws in force. The earliest was enacted in Massachusetts in 1978; since then, the state of New Jersey has followed suit.  The municipal governments of Philadelphia, PA and San Francisco, CA also have acted to preserve consumers' ability to pay in cash without being penalized.

About Tim Sanford

---

Tim Sanford is the retired, long-time editor of Vending Times.

Connect with Tim: