New York’s Cash Payment Law Takes Effect

It’s time to rethink how we handle our change. A new law in New York prohibits businesses from refusing cash payments, yet many establishments in the city are navigating around this rule creatively, continuing to adopt cashless practices.

This legislation aligns with ongoing efforts in the city, which have had mixed success over the years. State Attorney General Letitia James recently issued a warning to consumers, reminding them that all stores in the state must accept cash. Therefore, businesses that only accept credit or debit cards are now operating illegally.

Moreover, stores can’t impose extra fees for customers who opt to pay with cash, paralleling a similar regulation in New York City that has been in place since 2020.

Since 2021, the city’s Department of Consumer and Worker Protection has issued nearly 500 citations for noncompliance, primarily in Manhattan, where a significant number of these violations—371, to be exact—have occurred. Comparatively, Brooklyn accounted for 107 citations, while Queens and the Bronx had 15 and 2, respectively. Interestingly, Staten Island has seen no violations at all.

However, various businesses have found ways around the law, taking advantage of loopholes. For instance, many places now feature “reverse ATMs” that allow customers to convert cash into a temporary card without incurring extra costs. This method has been employed for years in venues like Madison Square Garden and Yankee Stadium, and the UBS Arena in Nassau County also installed a similar ATM when it opened in 2021.

James confirmed that businesses can decline cash payments as long as they have a reverse ATM on-site and aren’t charging any fees. Additionally, cash can only be refused in specific cases like phone or mail orders or when an invoice exceeds $20.

“New Yorkers deserve to have their needs met, regardless of their payment method,” James stated. “It’s unacceptable for businesses to deny access to essential goods like food and clothing by refusing cash or imposing higher fees for its use. I am committed to enforcing this law to safeguard consumers throughout the state.”