The state of New York has chosen to take a big and very important step towards cash acceptance in recent weeks, introducing a new law that requires most businesses to accept cash payments from their customers.
The new law, which came into effect on 21 March, means that consumers cannot be forced to pay by card or any other digital method to complete their purchase if they prefer to pay by cash, and also means that businesses are prohibited from charging customers a higher price for paying in cash.
The law applies to all retailers and food establishments across the entire state of New York, with businesses that fail to comply facing civil fines for non-compliance. This means that any business that has previously gone ‘cashless’ will need to make immediate plans to accept cash once again.
This new law echoes a New York City law that took effect in 2020 and was introduced to protect consumer rights, showing that one of the biggest and best-known states in the US is setting an example for the rest of society by looking after the needs of the general public there.
Letitia James, New York Attorney General, said: “New Yorkers have a right to service no matter how they choose to pay. Businesses cannot deny New Yorkers access to necessities like food and clothing by refusing to take cash…I will not hesitate to enforce this law to protect consumers across our state.”
The Importance of accepting cash
New York’s decision to mandate cash acceptance is one of many laws involving cash acceptance that have come into being across the US, and indeed, the world, protecting cash as a valid payment method.
Several states and cities across the US already have cash acceptance laws, including New Jersey, Colorado, Massachusetts, Washington D.C., Chicago and San Francisco. And countries including Australia, China, Belgium, France, Germany, Spain, Hungary, Norway, Switzerland, Italy, Greece and Slovenia all require businesses to accept cash too.
Some of these places were previously considering going cashless just a few years ago, but their regulators have since done a U-turn, wanting to find a balance between innovation in payments and consumer access and equality.
While digital payments are useful and undoubtedly here to stay, cash acceptance is vitally important for our society because:
- It works every time – cash is not affected by power cuts or system failures, so is very resilient
- It ensures privacy and autonomy – cash is the only payment method that doesn’t leave a digital footprint and protects your privacy, identity and data
- It’s secure – cash is proven to be secure against fraud and cybercrime
- It’s inclusive – cash provides payment and savings options to those who have no access to digital services, which especially helps the socially vulnerable
- It helps you budget – spending physical cash allows you to keep closer control of your spending
- There are no bank fees – cash doesn’t incur the same card issuer fees for businesses that debit and credit cards do
Above all, accepting cash promotes payment choice – something which consumers and campaigners across the globe are very passionate about.
Payment Choice
The reality is that most consumers across the world use a mix of different payment methods, often choosing to pay by card or digital methods for larger amounts and cash for smaller amounts, but the most important thing is that consumers everywhere should be given choice and not be restricted to a particular method of payment.
The need to cater to customer choice was highlighted by cash handling experts Volumatic in their 2021 white paper, ‘Consumers Demand Payment Choice’, following the global pandemic which saw many businesses going cashless, convinced that cash was somehow helping to spread COVID-19. But even after this was disproven by the World Health Organisation (WHO), some businesses still failed to listen to the fact that customers still want the right to choose whatever payment method they want to use.
How Volumatic can help
With over 50 years of leading cash handling innovation, Volumatic is well-versed in the cash versus card debate and thoroughly supports the notion that there is a place and a need for all types of payment methods. Volumatic can help all businesses handle and process cash with ease, and their popular CCi solution, used by the likes of Tesco, Co-op and Subway, has been proven to reduce cash handling costs by up to 75%, making it a smart return on investment for any business.
James Harris, Volumatic MD, said: “This decision by New York state reflects the growing global trends towards supporting and mandating cash acceptance, and we fully support them in giving choice to consumers, which is something Volumatic have been championing for many years.”
“Any businesses thinking that cash processing is time-consuming or expensive need to rethink this, and we are more than happy to help any businesses find the best way to deal with their cash takings, whether they be in New York or Newcastle – we have customers across the globe, and we’re always here and happy to help.”
Indeed, research from the Payment Choice Alliance – which campaigns for the long-term future of cash services, also supports customer choice and wants to see mandatory cash acceptance laws everywhere, including the UK, which currently gives businesses their own choice in what payment methods to accept.
Their survey revealed that 71% of British adults would support a legal requirement for businesses to accept cash, proving that mandatory cash acceptance is a debate that will certainly keep rolling on.
