Stores statewide now required to accept cash payments or face fine

Starting Saturday, stores across the state will be required to accept cash payments from customers. 

The state attorney general's office reminded New Yorkers on Friday the new legislation takes effect March 21 and requires all food stores and retail establishments in the state to take cash in exchange for goods and services. The law also bans charging extra for cash payments.

"New Yorkers have a right to service no matter how they choose to pay," Attorney General Letitia James said in a news release. "Businesses cannot deny New Yorkers access to necessities like food and clothing by refusing to take cash, or charging shoppers more for paying in cash."

Bayport Flower Houses on Montauk Highway, which offers florist services and a garden center, is covered by the law. But it won't make a difference because the business already accepts cash, said manager Amy Auwaerter.

"We always take cash," she said. 

The legislation includes bars and restaurants, and does not include exceptions for large cash transactions, said Christopher Phillips, an attorney with Holland & Knight who has written about the New York State cash acceptance law. 

"These types of statutes sort of came about in the wake of a lot of concern about equity and opportunity for unbanked people," he said. 

There are a few exceptions to the New York law. Stores are not required to accept bills valued at more than $20, and permitting cash payments is only required for in-person transactions, according to the attorney general's office.

Stores also can offer to convert cash into a prepaid card but may not charge a fee for doing so or require the customer to load the card with more than a dollar, the state said. 

"New York City has had a similar cash acceptance requirement on the books since 2020. I think the main thing here is that our retail members are more than happy to accept cash," said Dylan Jeon, senior director of government relations at the industry group the National Retail Federation. "It's usually the cheapest form of payment for retailers," although for some businesses, it could pose security risks. 

Also, some experts say national penny shortages after the federal government ended production of the coin in November could pose complications for businesses that can't charge cash-paying customers extra. 

"If a transaction comes out to $100.03, a cardholder is going to pay $100.03," Phillips said. "But for someone paying cash, if the retailer doesn't have pennies," they then face a rounding problem. Does the retailer round the bill up to $100.05? Or round down to $100?

"For bodegas and convenience stores that operate at fairly thin margins, and have a lot of cash-paying customers, these things can add up over time if they're rounding everything down," he said.

Customers can report stores that aren't following the law to the attorney general's office online or by calling 800-771-7755. The state will charge violators up to $1,000 for a first offense and $1,500 for subsequent transgressions.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.