New York Attorney General Alerts Consumers to New Statewide Cash Payment Law

The new statewide law makes it illegal for food stores and other New York merchants to refuse cash payments for goods or services, expanding a similar New York City ordinance that has been in effect since 2020. Under the legislation, retailers cannot require consumers to pay with credit cards or use other cashless payment methods, nor can they charge higher prices for cash transactions.

"New Yorkers have the right to be served, regardless of how they choose to pay," Attorney General James stated. "Businesses cannot deny New Yorkers access to their necessities, like food and clothing, by refusing to accept cash or overcharging customers who want to pay cash. I will not hesitate to enforce this law to protect New York consumers throughout our state."

Violating establishments face civil penalties of up to $1,000 for first-time violations and $1,500 for each subsequent offense. The law includes several exceptions: businesses are not required to accept bills larger than $20; cash acceptance is not mandated for phone, mail, or internet orders unless the transaction occurs at the physical establishment; and retailers can avoid the requirement by providing on-site devices that convert cash to prepaid cards without fees or minimum loading requirements above $1.

The statewide expansion follows growing scrutiny of cashless policies that consumer advocates argue disproportionately impact low-income individuals who may lack access to banking services or credit cards. Similar cash payment requirements have been enacted in cities including Philadelphia and San Francisco as policymakers seek to address financial inclusion concerns.

James encouraged New Yorkers who believe a store is violating the new law to file complaints with the Attorney General's Office through its online portal or by calling 1-800-771-7755. The AG's office has made consumer protection enforcement a priority, particularly regarding retail practices that may harm vulnerable populations.

The law represents part of broader state efforts to ensure equal access to essential goods and services. Legal practitioners note that the penalty structure and enforcement mechanism provide the AG's office with significant tools to compel compliance across New York's diverse retail landscape.