New Yorkers will soon have one less hurdle at the checkout counter: a newly signed state law will require most merchants to accept cash as payment.
According to the New York State Senate website, Governor Kathy Hochul recently signed a bill that “prohibit[s] food stores and retail establishments from refusing to accept payment in cash.”
Why It Matters
The COVID-19 pandemic sped up a long-running shift toward digital and contactless payments, with many businesses and customers preferring cards and mobile wallets over physical money. Some stores went so far as to stop taking cash entirely, which helped spur this legislation.
But research shows that cash is still essential for many Americans, especially older adults and people with lower incomes. The Federal Reserve has found that a significant share of consumers continue to rely on cash for everyday purchases.
A report from the Atlanta Federal Reserve Bank, published in May, found that 83 percent of adults used cash to make at least one purchase in the previous month. Meanwhile, the American Consumer Institute has emphasized the ongoing advantages of cash transactions for both merchants and shoppers, noting that paying with cash can help avoid interchange fees and potential card surcharges, and arguing that cash remains an important “expression of consumer choice.”
What the New Law Does
Bill A.7929A/S.4153A was introduced in April, sponsored by State Senator James Sanders Jr. and Assemblywoman Catalina Cruz, both Democrats. The measure does more than prohibit stores from refusing cash: it also bars businesses from tacking on extra fees or surcharges for cash payments that do not apply to cashless transactions.
The bill moved smoothly through the legislature. In its most recent state Senate floor vote, 53 lawmakers supported it, three opposed it, one was absent and six were excused. With Governor Hochul’s signature, New York joins a small but growing group of states that have adopted some form of “cash protection” rules.
In 2019, New Jersey effectively banned fully cashless businesses. Colorado followed in 2021 with a similar requirement that retailers accept cash for goods or services, subject to limited exemptions.
Lawmakers in Ohio are currently considering a bill that would require businesses to offer at least one point-of-sale option that accepts cash for purchases of $500 or less.
What Supporters Are Saying
Assemblywoman Catalina Cruz, a co-sponsor of the bill, wrote on Instagram in April: “Too many stores are going cashless, shutting out seniors, immigrants, and working-class New Yorkers who rely on cash every day. Our bill makes it clear: retailers and food stores can’t refuse cash—because access to essentials shouldn’t depend on a credit card.”
Senator James Sanders Jr. told Newsweek: “I firmly believe that this legislation was necessary to protect some of the most vulnerable New Yorkers. While digital payments are becoming more common, not everyone has access to credit cards, bank accounts, or smartphones. Many seniors, low-income residents, immigrants and young adults rely on cash to manage their daily lives. By allowing businesses to refuse cash, we were unintentionally creating a two-tiered system that excludes hardworking people from basic goods and services.”
“This new law restores fairness,” he added. “It ensures that every New Yorker, regardless of income, banking status, or technology access, can participate fully in the economy.”
Republican State Senator Joseph Griffo, in an appeal to Hochul in August, said: “An overwhelming majority of New Yorkers support this proposal. They want to be able to choose for themselves how they pay for goods or services. I am hopeful that the majorities will quickly send this bill to the governor for her consideration and that she will sign it into law because cash should be an option everywhere.”
When the Law Takes Effect
The bill specifies that it will take effect “on the one hundred twentieth day after it shall have become a law,” meaning the new rules are scheduled to go into force in March 2026.
