Time to dust off those dollar bills.
A newly enacted state law mandates that businesses across New York must accept cash payments, yet many city establishments continue to operate cashless or find inventive ways to bypass this requirement.
This legislation aligns with a similar rule that has been in place in New York City for several years, albeit with mixed enforcement success.
State Attorney General Letitia James recently issued a consumer alert emphasizing that all stores statewide are obligated to accept cash payments, rendering credit card-only policies illegal.
Additionally, businesses are prohibited from imposing additional charges on customers who opt to pay with cash, reflecting a regulation that has existed in New York City since 2020.
Since the city began enforcing this rule in 2021, the Department of Consumer and Worker Protection has issued nearly 500 summonses to non-compliant businesses.
Almost all of the offenders have been in Manhattan, which racked up 371 summonses in the past six years.
Brooklyn was issued 107 in the same timeframe, while Queens received 15, and the Bronx had two.
Staten Island has received none.
But plenty of businesses are also skirting the rule without punishment through a loophole in the Big Apple law.
Shops can provide a “reverse ATM” on premises that will convert the cash into a temporary card worth the same amount without requiring an additional fee.
Venues such as Madison Square Garden and Yankee Stadium have been using that process for years.
UBS Arena in Nassau County on Long Island has also had the special ATMs in place since it opened in 2021.
James is allowing businesses to refuse cash if they have reverse ATMs on the premises and do not implement a fee for their use.
The only time a business can refuse cash is for orders made over the phone or through the mail or if a customer pays with bills over $20.
“New Yorkers have a right to service no matter how they choose to pay,” James said in a statement.
“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. I will not hesitate to enforce this law to protect consumers across our state.”
