What's happening
This bill requires most retail businesses in New York to accept cash as payment for goods and services.
Why it matters
Addresses economic inclusion. by ensuring that people without access to credit or debit cards—often lower-income, unbanked, or underbanked individuals—can still participate in the retail economy and purchase essential goods and services.
Limits exceptions to in-person transactions. , meaning businesses can still require non-cash payments for online, mail, or telephone orders, but must accept cash when the customer is physically present, maintaining flexibility for remote commerce.
Empowers regulators to make exemptions. , allowing the Department of Financial Services to consider the practicality and risk (e.g., for very high-value transactions, specific industries, or small denominations) and craft rules that balance consumer protection with business realities.
Establishes enforceable penalties. with fines up to $500 per violation, signaling a serious commitment to compliance and providing a deterrent for businesses that might otherwise ignore the cash acceptance requirement.
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Who cares
Headline styles
Require Stores to Accept Cash
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
2 Co-sponsors
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Stores to Take Cash
In Assembly Committee · Consumer Affairs And Protection · Sponsor Richard Gottfried
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5135
2019-2020 Regular Sessions
IN SENATE
April 10, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to requiring merchants to accept cash as payment for goods
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 396-aaa to read as follows:
§ 396-aaa. Cash payment non-discrimination. 1. Any retail mercantile establishment as defined in article twelve-B of this chapter, in which food is prepared, sold, or served subject to title eight of article thirteen of the public health law, or other establishment offering goods or services for sale shall accept United States currency (cash) as legal tender when offered as payment. Such establishment shall not discriminate against a cash buyer by requiring the use of a credit or debit card or electronic payment device or process in order to purchase food, goods, or services. This section shall not apply to telephone, mail order, electronic, online, or other transactions in which the buyer is not present in the establishment's physical place of business.
2. The superintendent of the department of financial services may make regulations to implement this section, including authorization of exemptions or exclusions from this section. Exemptions or exclusions under this section may be provided based on criteria including, but not limited to, the nature of the establishment; the nature of the food, goods, or services; the denomination of currency used; or the amount of the transaction.
3. A violation of this section shall be punishable by a fine not to exceed five hundred dollars.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the superintendent of the department of financial services may make regulations and take other actions reasonably necessary to implement this act on that date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03862-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to requiring merchants to accept cash as payment for goods
Purpose
This bill would require business establishments to accept US currency
(cash) as legal tender when offered as payment, with certain exceptions pursuant to regulation.
Summary of provisions
Section 1 adds a new section 396-aaa to general business law to:
1. Require that any retail mercantile establishment, establishment in which food is prepared, sold, or served, or other establishment offering goods and services shall accept US currency (cash) when offered as payment; prohibit such establishments from discriminating against cash buyers by requiring use of credit or debit cards for payment; exempt transactions in which the buyer is not present in the establishment's physical place of business.
2. Authorize the superintendent of the department of financial services to make regulations to implement this section, including authorizing exemptions or exclusions based on certain criteria.
3. Impose a fine of up to $500 for a violation of this section.
Section 2. Effective date 180 days after it shall have become law.
Justification
Several businesses have recently gone "cashless." While this can have the aura of being cutting edge and efficient, cash remains the most widely used form of payment, especially for small purchases. For many New Yorkers, cash is not only convenient but essential - their only way of paying. According to the NYC Department of Consumer Affairs, twelve percent of New York City households did not have bank accounts as of 2015 - rising to 40%-50% in some neighborhoods in the Bronx and Brook- lyn. It is almost impossible to have a credit or debit card without a bank account, and many more people just do not have a credit or debit card. Refusing to accept cash is discrimination against low and moderate income customers.
Businesses refusing to accept cash payments contribute to increased credit card debt. Decades of research indicates that people spend up to twice as much for the same item if they aren't paying cash. Cash is also the only form of payment that affords customers privacy in their purchases and is not subject to hacking.
Legislative history
2018: A10686 - Referred to Consumers
Fiscal implications
None
Effective date
180 days after it shall have become law, provided that the superinten- dent of the department of financial services may make regulations and take other actions reasonably necessary to implement this act on that date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.