In March 2026, the State of New York enacted a law requiring most retail establishments and food stores to accept cashMoney in physical form such as banknotes and coins. More for in-person transactions. This legislation is part of a broader national movement, as states and cities across the US workto protect consumers’ right to pay with cash. The push for cash acceptance comes amid concerns about financial exclusion, privacy, and the resilience of digital paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More systems. Meanwhile, a federal bill aimed at standardizing cash acceptance nationwide is gaining momentum in Congress.
On March 20, 2026, New York’s “Protection of Cash Payments” bill came into effect, making it illegal for retail establishments and food stores to refuse cash payments for in-person transactions. The law also prohibits merchants from imposing surcharges on cash users or requiring card payments for purchases made in person. While businesses are not required to accept bills larger than $20, the law ensures that consumers can use cash for everyday purchases, from groceries to clothing.
The legislation was driven by the recognition that millions of New Yorkers—particularly those who are unbanked, underbanked, or prefer cash for budgeting or privacy reasons—risk being left behind in an increasingly digital economy. According to the Federal Deposit Insurance Corporation (FDIC), millions of US households still lack access to traditional banking services, making cash a critical tool for financial inclusionA process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... More. The law also addresses the growing trend of “cashless” stores, which can exclude vulnerable populations and limit consumer choice.
New York is not alone in its efforts to preserve cash as a payment option. Several other states and cities have enacted similar laws, including:
These laws reflect a growing consensus that cash must remain a viable payment option, even as digital transactions become more prevalent. Proponents argue that cash acceptance is essential for equity, ensuring that all consumers—regardless of their access to digital payment methods—can participate in the economy.
At the national level, the US Congress is debating the Payment Choice Act, a bipartisan bill that would require brick-and-mortar businesses across the country to accept cash for transactions up to $500. The bill aims to standardize cash acceptance and prevent discrimination against cash-paying customers. If enacted, it would override state and local laws, creating a uniform standard for cash acceptance nationwide.
The federal bill has gained support from lawmakers on both sides of the aisle, as well as from consumer advocacy groups. It builds on the principle that US currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More is legal tenderMoney that is legally valid for the payment of debts and must be accepted for that purpose when offered. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered (“tendered”) in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt. More for all debts, public and private, and seeks to ensure that this right is upheld in everyday transactions. The bill also prohibits merchants from charging cash users higher prices, further protecting consumers from unfair practices. A Siena Research Survey from December 2025 reveals that more than four infive Americans support laws requiring most U.S. businesses to accept cash.
The movement to mandate cash acceptance is rooted in concerns about financial inclusion and consumer choice. Cash remains a vital payment methodSee Payment instrument. More for millions of Americans, including those who lack access to banking services, rely on cash for budgeting, or value the privacy it provides. According to the 2025 Diary of Consumer Payment Choice, 14% of transactions in 2024 were completed in cash, and over 90% of US consumers intend to use cash in the future. For many, cash is not just a payment method but a lifeline, offering independence from digital systems that can be vulnerable to outages, hacking, or fees.
Cash also plays a crucial role in emergencies, such as power outages or cyberattacks, when digital payment systems may fail. By ensuring that cash is accepted, these laws help build a more resilient economy, where consumers can always access essential goods and services.
Despite its benefits, mandating cash acceptance is not without challenges. Some merchants argue that handling cash is costly and time-consuming, particularly in an economy increasingly geared toward digital payments. Others point to the risk of theft or the administrative burden of cash managementManagement and control of cash in circulation. More. However, proponents counterAutomatic device for the counting of banknotes or coins. More that these challenges are outweighed by the need to protect vulnerable populations and preserve payment choice.
Critics also note that cash acceptance laws do not address broader issues, such as the declining availability of ATMs or the difficulties faced by small businesses in managing cash. Yet, supporters argue that these laws are a necessary first step in ensuring that cash remains a viable option for all consumers.
The adoption of cash acceptance laws in New York and other states, along with the ongoing debate over federal legislation, signals a shifting attitude toward cash in the U.S. While digital payments continue to grow, there is a growing recognition that cash must be preserved as a fundamental right. The Payment Choice Act, if passed, would mark a significant milestone in this effort, ensuring that cash remains a cornerstone of the American payment landscape.