While many smaller businesses operate by taking only credit card payments, there’s a new state law requiring many businesses to accept cash. It went into effect over the weekend after the governor signed it last year.
“We’ve been open for five years now, and we’ve saw the transition from more credit card use to less cash. So, we’re probably about a 90/10 split,” said Elias Zeina, owner of Lafa Mediterranean.
Zeina said there are benefits to card transactions.
“Easier for a customer just to pay with a credit card because then we don’t have to handle the cash, so we eliminate that risk. We eliminate the risk of any inaccuracy with the change through the cashier to the customer. So, from our perspective, credit card’s easier,” said Zeina.
But ultimately, accepting cash can save them money.
“And then the credit card fees are unreal. Sometimes, businesses get hit with a 3% or 4% credit card fee. So, from a business standpoint, we’d rather accept cash because then we don’t get hit with that 3% or 4% fee,” said Zeina.
“As businesses move forward, some prefer cash,” said Democratic Assemblywoman Marianne Buttenschon, who co-sponsored the legislation. “I’m a small business owner. We don’t have a credit card system. We’re open eight days a year.”
She said some seniors in her district told her they would rather pay with cash.
“I heard from folks with the State Fair recently that went cashless, and they said they weren’t going to go for that reason alone,” said Buttenschon.
“The fair offers the use of Reverse ATMs on the fairgrounds, converting cash into digital or card payments, to ensure that the fair is accessible to all visitors, while maintaining the efficiency and convenience of electronic transactions,” a spokesperson with New York State Department of Agriculture and Markets said. “It will also work with its vendors to ensure compliance with the new legislation.”
The Syracuse Mets went cashless in recent years and offer a similar alternative for cash.
“So, we’ll accept at the ticket windows and up in the team store, fans can just give us cash. We’ll give them either a gift card that will last forever here at the Syracuse Mets, or we can do loaded tickets and they can just scan their tickets and do it from their tickets,” said Jason Smorol, general manager with the Syracuse Mets.
“On the gift cards, maybe we did a couple of hundred last year. So, people for the most part just use credit cards,” said Smorol.
Devices that convert cash are allowed in the new law if they don’t charge a fee or require more than a $1 minimum. The new law also states $20 is the highest bill required to be accepted. Purchases made over the phone, mail or internet don’t apply.
According to the state Attorney General Letitia James, a similar law has been in effect in New York City since 2020.
If someone notices a violation of this law, they can submit a report to the AG’s office.