RI House Approves Ban On Cashless Businesses

On Tuesday, the House of Representatives approved a bill that would ensure Rhode Island residents have the right to pay for things in cash, taking aim at cashless businesses. If approved by the Senate and signed into law by Governor Gina Raimondo, the law would require that all businesses in the state accept cash as payment. The bill's sponsor, State Representative Mia Ackerman of Cumberland, said cashless businesses discriminate against those without credit cards.

"More and more retailers are shifting to cashless transactions in other parts of the country for various reasons," Rep. Ackerman said. "From a consumer perspective, this could have a negative impact on working class customers, senior citizens and college students who don’t have credit cards."

Ackerman contended that since the U.S. dollar is legal tender, with "for all debts, public and private" emblazoned on the front, cash should be accepted at all businesses, though the bill does not apply to any online purchases. In addition, she argued that cash allows people to keep their purchasing habits private, instead of having everything tracked by credit card companies.

Meanwhile, some people simply do not have credit cards, either by choice or because they are not able to get one. According to the Federal Deposit Insurance Corporation, approximately eight percent of U.S. households do not have a bank account, while 25 percent of adults do not have a credit card.

"Given the age requirements for credit cards, a cashless policy creates a type of age discrimination that we should not be tolerating," Rep. Ackerman continued. "Businesses still have an obligation to be accessible to everybody — not just those who have a credit card."

The legislation now moves to the Senate.