New York's Cash Payment Law: What Businesses Must Accept
New York requires most businesses to accept cash as payment
New York State law says that most businesses must take cash from you when you want to pay with it. The law is called the Cashless Business Prohibition Law, and it went into effect on March 1, 2020. If a store, restaurant, utility company, or other business refuses to let you pay with cash, they are breaking the law — and you have options to report them.
The rule applies to any business that sells goods or services to the public in New York State. It does not matter if the business is a small corner store or a large chain. It does not matter if they prefer digital payments or claim their register is broken. Cash is legal tender, and they must accept it.
Key Takeaways
- Businesses in New York must accept cash payment for goods and services, with only a few narrow exceptions like laundromats and parking meters.
- A business cannot refuse you because you want to pay with cash, charge you extra for paying with cash, or require you to use a card or app instead.
- If a business refuses cash, you can file a complaint with the New York Department of Consumer and Worker Protection, which investigates violations.
- Utility companies, phone companies, and other service providers must also accept cash payment, either in person or by mail.
Which businesses are covered and which are not
The law covers almost every business that takes payment from customers. Restaurants, grocery stores, gas stations, pharmacies, gyms, salons, repair shops, and online retailers that offer in-person pickup all have to accept cash. Utility companies, internet providers, and phone companies must accept cash too — usually by mail or at a payment center.
A few narrow exceptions exist. Laundromats, parking meters, and toll booths can be cashless because they use automated machines. Businesses that operate entirely online and ship goods to you do not have to accept cash in person, though they may offer mail-in payment options. Certain government agencies and non-profit organizations may have different rules, but most private businesses have no exception.
What the law prohibits businesses from doing
A business cannot refuse to sell you something just because you want to pay with cash. They cannot tell you "we only take cards" or "our system is down, come back with a card." They cannot charge you an extra fee for paying with cash. They cannot require you to use a specific payment app, digital wallet, or credit card.
Some businesses have tried to work around the law by claiming they do not have a register that handles cash, or by saying cash slows down the line. None of these reasons are legal. If a business is open and taking payment, it must accept cash. If they genuinely cannot process cash at that moment, they must offer you an alternative — such as coming back later, paying by mail, or paying at a different location they operate.
How to report a business that refuses cash
If a business refuses to take your cash payment, you can file a complaint with the New York Department of Consumer and Worker Protection (DCWP). You can file online at www.nyc.gov/dcwp if you are in New York City, or contact your county's consumer protection office if you are elsewhere in the state. You can also call 311 in New York City to report the violation.
When you file, include the name and address of the business, the date and time of the incident, and what happened. If you have a receipt or photo, include that too. The DCWP will investigate. Businesses that violate the law can face fines. You do not need to be a lawyer or hire anyone to file a complaint — it is free and you can do it yourself.
If the business is a utility company or service provider, you can also file a complaint with the New York Public Service Commission (PSC), which oversees utilities. The PSC has its own complaint process and can order a utility to accept cash payment.
What happens if you are already in a dispute with a business
If you have already paid with a card and are now in a billing dispute, the cash payment law does not directly help you — but other consumer protection laws do. If a business charged you incorrectly or refused a refund, you can dispute the charge with your credit card company or bank. You can also file a complaint with the DCWP about the billing practice itself.
If you are behind on a utility bill and the company is threatening to shut off service, paying with cash now will not erase what you owe. However, the utility must accept your cash payment going forward. If you cannot pay the full amount, ask about payment plans or hardship programs — many utilities offer these regardless of how you pay.
Cash payment and online or phone orders
If you order something online or by phone from a New York business, the business does not have to accept cash for that transaction — because the transaction is not happening in person. However, if the business offers in-person pickup or delivery, they must accept cash at pickup or delivery. If they only ship by mail, they may require a card, check, or money order.
Some online retailers now offer cash on delivery (COD) as an option, meaning you pay the delivery driver in cash when your package arrives. This is voluntary on the business's part, but if they offer it, they must follow through. If a business advertises cash on delivery and then refuses it, that is a violation you can report.
Frequently Asked Questions
Can a business charge me extra for paying with cash?
No. A business cannot add a surcharge, convenience fee, or any other charge for paying with cash. They also cannot give you a discount for using a card as a way to discourage cash. The price you see must be the same whether you pay with cash, card, or any other legal method.
What if a business says their cash register is broken?
If the register is truly broken, the business should offer you an alternative — such as paying by card, paying later, or paying at another location. They cannot simply refuse the sale. If they refuse to offer any alternative, that is a violation. Document what they said and file a complaint with the DCWP.
Do utility companies have to accept cash payments by mail?
Yes. Utility companies must accept cash payment, and most allow you to pay by mail, in person at a payment center, or through an authorized payment agent. Check your bill or the company's website for payment methods. If a utility refuses to tell you how to pay with cash, contact the New York Public Service Commission.
Can a business require me to open an account or app to pay with cash?
No. A business cannot require you to use a digital payment app, create an online account, or provide personal information beyond what is needed for the transaction itself. If they demand this as a condition of accepting cash, that is a violation of the law.
What if I am shopping at a business outside New York City but still in New York State?
The law applies statewide. Any business operating in New York State must accept cash. If you are in a county outside New York City, contact your county's consumer protection office or the New York State Attorney General's office to file a complaint.