|
Retail businesses that thought that they could get away from
cash transactions and go cashless have to rethink that idea.
Cities and States are increasingly mandating that
retail stores take cash.
Cities and states like San Francisco, New York City,
Philadelphia, Washington D.C., Massachusetts and New Jersey
have enacted or in the process of enacting laws that would
mandate that retail stores accept cash transactions.
Some have even imposed fines for refusing to take
cash.
The arguments in favor of going cashless range from safety
to saving time.
Retailers believe that not taking cash reduces the incentive
for someone to attempt robbery.
The other argument is that it takes an average of two
hours away from the business to run to the bank to make
deposits.
Those in favor of cash transactions argue that cash less
transactions discriminate against the poor, victims of
domestic violence, the homeless and undocumented aliens.
Some people also prefer cash transactions because
they don’t want to leave a digital trail of their movements
and transactions.
A report by the
Federal Deposit Insurance Corporation (FDIC) in 2017
estimated that 6.5 percent of American households were
“unbanked”.
Also, 17 percent of African American households and 15
percent of Latino households had no bank account.
Here is what the specific laws and ordinances in the
respective cities and states have stipulated.
San Francisco:
San Francisco's legislation requires brick-and-mortar
businesses to accept cash for goods and some services.
Temporary pop-up stores and internet-only businesses such as
ride-hailing companies would be exempt, as would food
trucks, which say they lack the resources to handle cash.
New York City:
It shall be unlawful for a food-service establishment or a
retail establishment, as policy, to refuse to accept payment
in cash from consumers.
A food-service establishment or retail establishment
violating this section is liable for a civil penalty of not
more than $250 for the first violation and a civil penalty
of not more than $500 for each succeeding violation.
Philadelphia:
A person selling or offering for sale consumer goods or
services at retail is prohibited from refusing to accept
cash as a form of payment to purchase goods or services.
A person selling or offering for sale goods or
services at retail shall not:
a. Refuse to accept cash as a form of payment;
b. Post signs on the premises that cash payment is not
accepted;
c. Charge a higher price to customers who pay cash than they
would pay using any other form of payment.
(2) The
following exemptions are allowed:
a. any telephone, mail, or internet transactions;
b. parking lots and parking garages;
c. transactions at wholesale clubs that sell consumer
goods and services through a membership model;
d. transactions at retail stores selling consumer
goods exclusively through a membership model that requires
payment by means of an affiliated mobile device application;
e.
transactions for the rental of consumers goods, services, or
accommodations for which posting of collateral or security
is typically required;
f. consumer goods or services provided exclusively to
employees and others authorized to be on the employer's
premises.
Violations could result in a fine of $2000 or imprisonment.
Washington D.C.:
A retailer shall not:
a. Discriminate against cash as a form of payment for
services purchased on the licensed premises;
b. Post signs on the licensed premises that cash payment is
not accepted;
c. Charge different prices to customers depending on their
payment method.
Violations could result in civil penalties under the Code of
the District of Columbia Section 28-3904 [Unfair or
deceptive trade practices].
Massachusetts:
Section 10A. No retail establishment offering goods and
services for sale shall discriminate against a cash buyer by
requiring the use of credit by a buyer in order to purchase
such goods and services.
All such retail establishments must accept legal
tender when offered as payment by the buyer.
New Jersey:
A1l person selling or offering for sale goods or services at
retail 1[to] shall not1 require a buyer to pay using credit
or to prohibit cash as payment in order to purchase the
goods or services.
A person selling or offering for sale goods or
services at retail shall accept legal tender when offered by
the buyer as payment.
It does not apply to:
(1)
any person selling goods or services at an airport,
provided that at least two persons selling food at each
terminal within the airport accept cash as payment;
(2) any company in the business of renting motor
vehicles, provided that the company accepts a cashier’s
check or a certified check when offered by a buyer as
payment3.
A person in violation of the law will be subject to a civil
penalty of up to $2,500 for a first offense and up to $5,000
for a second offense.
|
