Attorney General Letitia James confirms new rules requiring retailers to accept cash payments, as policymakers revisit the role of physical currency in an increasingly digital payments market
New York retailers must now accept cash payments under a new statewide law that took effect on 21 March, marking one of the most expansive interventions in the US payments market to protect access to physical currency.
In a consumer alert issued ahead of the deadline, Attorney General Letitia James confirmed food stores and retail establishments across the state are no longer permitted to refuse cash or impose higher prices on customers choosing to pay with notes and coins.
“New Yorkers have a right to service no matter how they choose to pay,” James said. “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. I will not hesitate to enforce this law to protect consumers across our state.”
The legislation extends a framework already in place in New York City since 2020, but now applies statewide. It forms part of a broader policy response in the US aimed at addressing concerns that the shift towards digital payments risks excluding certain groups of consumers.
Cash refusal now subject to penalties
Under the new rules, businesses cannot require customers to pay by card or other cashless methods, nor can they apply surcharges to those using cash.
Retailers found in breach of the law face civil penalties of up to $1,000 for a first violation and $1,500 for subsequent offences.
The law does include several exemptions. Businesses are not required to accept bills above $20, and transactions conducted remotely, such as online or by telephone, are not covered unless completed in-store. Merchants may also offer on-site cash-to-card conversion services, provided these do not include fees or minimum load requirements above $1.
Attorney General James has encouraged consumers to report violations directly to the Office of the Attorney General, signalling an enforcement-led approach to implementation.
US payments shift raises inclusion concerns
The move comes amid a sustained shift in the US towards electronic payments, accelerated by e-commerce growth and changing consumer behaviour following the pandemic.
Card payments and digital wallets now dominate point-of-sale (POS) transactions across much of the country, with some merchants experimenting with fully cashless models in recent years. These models have been particularly prevalent in urban retail environments, quick-service restaurants, and event venues.
However, policymakers have increasingly raised concerns about the implications for financial inclusion. According to data from the Federal Deposit Insurance Corporation (FDIC), millions of US households remain either unbanked or underbanked, limiting their ability to access card-based or digital payment methods.
For these consumers, cash remains a primary means of transacting. Advocacy groups have argued that refusing cash can effectively exclude individuals from accessing essential goods and services, particularly in sectors such as food retail. New York’s statewide law reflects these concerns, framing cash acceptance as a consumer protection issue rather than a payments preference.
Patchwork of US state and city policies
New York is not alone in legislating against cashless retail. Several US jurisdictions have introduced similar measures in recent years, though the regulatory landscape remains fragmented.
States including New Jersey, Massachusetts and Rhode Island have enacted laws requiring most brick-and-mortar retailers to accept cash, while cities such as Philadelphia, San Francisco and Washington D.C. have implemented municipal-level bans on cashless-only businesses.
These policies vary in scope and enforcement mechanisms, but share a common objective of preserving access to physical currency as digital payment adoption accelerates.
At the federal level, proposals to mandate cash acceptance nationwide have been discussed but have not progressed into law, leaving states and cities to set their own frameworks.
Global approaches to cash acceptance diverge
Beyond the US, approaches to cash acceptance vary widely across jurisdictions, reflecting different balances between innovation and inclusion.
In parts of Europe, policymakers have taken steps to safeguard the role of cash within increasingly digital economies. The European Commission has proposed measures to ensure the acceptance and availability of euro banknotes and coins, positioning cash as legal tender that must remain widely usable.
Some countries have gone further. Spain introduced legislation requiring most businesses to accept cash, while also placing limits on maximum cash transaction values as part of anti-money laundering efforts. France maintains similar requirements tied to the legal tender status of cash, although enforcement is typically linked to specific consumer protection contexts.
By contrast, Nordic markets such as Sweden and Norway have seen rapid declines in cash usage, with many businesses operating on a largely cashless basis. Even in these markets, however, governments have begun to reassess the long-term resilience of payments infrastructure, particularly in light of contingency planning and access considerations.
