New York City’s restaurants and other retail establishments will no longer be allowed to reject cash payments under legislation passed by the City Council on Thursday.
Supporters of the bill say cashless businesses requiring credit cards and electronic payments like Apple Pay discriminate against poor people who may not have bank accounts or credit cards — as well as minors.
“The City of New York cannot allow the digital economy to leave behind the 25 percent of New Yorkers who are chronically unbanked and underbanked,” said Councilman Ritchie Torres (D-Bronx), the bill’s sponsor.
The legislation, which was approved 43-3, also prohibits businesses from charging cash-paying customers a higher price than those using credit.
The bill is also backed by Mayor Bill de Blasio and is expected to become law in nine months.
It is expected to put a severe crimp in the operations of no-cash chains Dos Toros and By Chloe.
Violators would face fines of up to $1,000 for a first offense and up to $1,500 for additional violations.
Similar bans already exist in other parts of the country, including Philadelphia and San Francisco.
The three council members who voted against the bill were Staten Island Republicans Steve Matteo and Joe Borelli and Brooklyn Democrat Kalman Yeger.
Mendacium17 on January 25th, 2020 at 16:11 UTC »
Throughout this whole thread I keep coming across this idea that poor people don’t have bank accounts in the US. Coming from Ireland and the EU, I just can’t understand this. What restricts them from getting one? How do they get loans and mortgages when not a part of a bank? How are they paid? It would be extremely difficult here to not have a bank account and function as a member of society.
tankertodd on January 25th, 2020 at 13:11 UTC »
Poor credit people don’t qualify for a demand deposit (checking) account because of the risk of fraud. If their name is on the Cheksystems list (wrote a bad check) you also won’t get approved.
This seems outdated if the debit card does a real time balance check before transacting. So I would imagine banks could start to offer this, except that they don’t make money on this kind of account if there are no fees incurred.
The real headline is buried: 25% of people in the city can’t even get a checking account? Holy shit. That’s the real problem. Let’s dig into that one. No way 25% of a city’s population is a bad credit risk right?
MaroonTrojan on January 25th, 2020 at 10:18 UTC »
Legit question: must the businesses offer change?
I have been on the Metro North and their stated policy for cash ticket purchases onboard is that they do not provide change. Same with bus fares and other transit transactions. I always wondered about the legality of this, but like, it's the MTA. Under this new scheme, could a business say they accept cash for payment, but decline to provide change if the balance isn't paid exactly?
Similarly, does this mean Metro North/the MTA will be obligated to make change for fare purchases made in cash?