Pursuant to Local Law 34 of 2020, cashless establishments are prohibited in New York City, effective November 19, 2020. Violations of this law can result in civil penalties of up to $1000 for the first violation and up to $1500 for subsequent violations. Establishments covered by the law include:
- Food Stores: Establishments that offer food or beverages to the public for consumption or use on or off the premises, or on or off a pushcart, stand or vehicle; and
- Retail Establishments: Establishments that offer consumer commodities, or where services are provided to consumers at retail. This does not include banks or trust companies.
On November 19, 2020, it will be unlawful for a food store or a retail establishment to refuse to accept payment in cash from consumers, unless payment is in:
- Cash bills denominated above $20; or
- Cash for any telephone, mail, or internet-based transaction, unless the payment for such transaction takes place on the premises of the food store or retail establishment.
Regardless, no food store or retail establishment shall charge a higher price to a consumer who pays in cash.
Furthermore, the law exempts food stores or retail establishments that provide a device on premises that converts cash, without charging a fee or requiring a minimum deposit amount greater than one dollar into a prepaid card that allows a consumer to complete a transaction at the establishment.