By FOCUS, A Leonine Business
As digital payments continue to dominate consumer transactions, state legislatures across the country are reconsidering the role of cash in commerce. Most legislation focuses on preventing businesses from refusing to accept cash as payment. So far, 42 bills related to cash mandates have been introduced across 23 states, the District of Columbia and the United States Congress in current legislative sessions. These proposals signal growing concern about the implications of a cashless economy for unbanked and underbanked populations.
The Federal Reserve’s 2024 report on consumer payment habits found that while 60 percent of payments in 2023 were made via credit or debit cards, cash still accounted for 16 percent. Additionally, preference for cash has remained steady at around 19 percent since 2021. In-person transactions, particularly among low-income households and individuals aged 55 and older, continue to drive cash usage. A 2023 survey from the Federal Deposit Insurance Corporation found that 5.6 million households in the United States remain unbanked.
In 2019, municipalities like San Franciso and Philadelphia enacted cashless bans. New York City followed suit in 2020 and Miami-Dade County did so in 2022. Since then, seven states and the District of Columbia have enacted laws requiring businesses to accept cash. Notably, Massachusetts has had a ban on cashless retail operations since 1978. Some of the states currently considering cash mandates more seriously include Arizona and New York. In Arizona, HB 2683 passed the House on February 25 and was read for a second time in the Senate on March 10. The bill would require retail businesses with a physical location in the state to accept cash as a form of payment for goods and services with an aggregate value of $100 or less. In New York, SB 4153 passed the Senate on April 8 and was referred to the Assembly Consumer Affairs and Protection Committee. The bill would prohibit food service and retail establishments from refusing cash as payment from consumers. At the federal level, the Payment Choice Act has been reintroduced every session since 2019. It was introduced this year as HR 1138 on February 7 and referred to the House Financial Services Committee. The legislation would require businesses accepting in-person payments to accept cash for purchases under $500 and would prohibit cash penalties such as added fees or higher prices.
As more consumers embrace cashless convenience, lawmakers are working to balance innovation with accessibility. The growing number of state and federal proposals reflects a broader conversation about economic equity and the right to choose how to pay. FOCUS will continue to monitor cash mandate legislation and payment policy developments in legislatures across the country.
by Will Beacom 4/28/25