In effect from 21 March 2026, New York State’s Protection of Cash Payments law makes it illegal for in-person stores and food service establishments to refuse cash or impose higher prices on cash-paying customers. Numerous states and cities across the US have implemented cash acceptance mandates to protect financial inclusion and consumer choice in an increasingly digital landscape.
Key takeaways from the NY Protection of Cash Payments bill
New York State law now tackles in-person cash acceptance covering denominations from 1 cent coins to $20 bills (with higher value bills excluded). Here are the key takeaways:
- Physical retail and food establishments must accept cash
- It is illegal to charge higher prices for purchases made in cash
- Violations are subject to fines of up to $1,500 per offense
This law aims to protect the millions of people who need or prefer cash – especially for everyday purchases such as food, household goods, clothes, and conveniences.
Could a nationwide US cash acceptance mandate be next?
Cash payments aren’t going to disappear anytime soon. According to the Federal Reserve’s 2025 Diary of Consumer Payment Choice study, over 90% of US consumers intend to use cash in the future.
US government support for cash acceptance is fragmented but growing, with State and city laws in Massachusetts, New Jersey, Washington D.C., San Francisco, and several other jurisdictions (in addition to New York).
If passed by US Congress, the Payment Choice Act that is currently under deliberation would require the nationwide acceptance of cash for in-person transactions of up to $500 in value.
Both these shifts indicate that the importance of cash in US society is being re-evaluated; a line of questioning that is becoming increasingly prevalent around the world.
The wider global shift towards preserving cash payments
Many technologically advanced countries remain skeptical of ‘cashless’ living, while cash-dependent nations don’t even consider it an option. Countries like China, France, Sweden and Spain have already implemented cash acceptance mandates.
Others currently lack such laws but are experiencing increased cash advocacy from diverse industry bodies and the general population - as we are seeing in the UK, Germany, and Australia, to name a few.
Cash has endured because it is arguably the most inclusive payment method. It also provides irreplaceable security, resilience, and privacy, along with a tangible sense of ‘spending’ that many consumers value. The benefits are global, and so is the impact.
Beyond acceptance: prioritizing cash access and management
Promoting cash acceptance is a significant step forward, but it’s also important to consider the broader implications. To pay in cash, customers need convenient access to cash withdrawal points. Then, once accepted at the point of sale, cash must be managed effectively across multiple stakeholders, including banks.
- Do consumers have adequate access to cash? If not, how can we improve it?
- What do retailers, banks and other stakeholders need to effectively manage cash-cycle demands?
As banks continue to decrease branch footprints, ATMs are meeting the need for automated cash withdrawals and deposits, while also connecting customers with broader digital services. They play a major role in sustaining cash in society.
To talk more about leveraging ATMs to optimize the cash cycle, please
This article was inspired by a recent editorial from Cash Essentials.