Stores currently are shifting to “cash-less” because it is more convenient to customer and provides an extra layer of security on transactions. However, major cities, including Philadelphia, are looking to pass legislation to force stores to accept cash payments as an option from customers. The reasoning behind this is to provide an option for those who may not have the luxury of owning credit cards or having a bank account to pay for items within that specific store. This has even gone so far that a State Senator from New Jersey has imposed penalties for not accepting cash payments as an option. The penalties for not cooperating range from hundreds of dollars all the way up to $5,000.
Amazon has stepped in and has expressed opposition to this bill, as they have multiple pop-up stores located within New Jersey. There is currently a legal battle in progress to find a middle ground to this continuing issues. Other cities across the United States, such as New York and Chicago, have caught a drift about this legislation and are in the progress of developing their own as well.
I find this article interesting because there is a conflict for how fast technology has progressed within recent years. I understand what these local governments are trying to provide to their citizens, but there is only so much to stop the progression of technology within stores. Sweeden is a country for example that has implemented a cash free stores into their society after leading the way. I know within my own friend group I use venmo to pay my bills and food rather than use physical cash. This is an interesting piece that could affect lots of people.
Source: https://www.nytimes.com/2019/02/20/business/cashless-payments.html
The title of this article caught my eye. I find it ironic looking at the history of payment methods in stores that cash used to be the only option and people were excited when there was another payment method, but now people are getting excited about cash coming back. We wanted to use more credit card transactions, but we are also not totally ready to give up the cash option. I can agree with this in many ways. Last week when I was in Chicago I visited a cash-less coffee shop. I had just received a $20 bill and I was ready to pay for my beverage with that cash. I was informed that they do not accept cash and this was a bit of a shock to me. Although I hardly use cash anymore, I still think it is important to have that option available for reasons such as the ones mentioned above. Sometimes, people just don’t get the chance to deposit cash into their bank account before they want to use it. In other cases, it may be such a small transaction, such as $1.00, that it is easier to hand over a dollar bill and leave than wait for a credit card transaction. The security and convenience of card transactions are valuable, but I agree that it is not time to go completely cash-less yet.
I have recently attended a cash-less cafe in Philadelphia. The cafe was packed due to the lunchtime rush. Due to the cash-less pay model, the line was swift and the transactions went smoothly. Technology is rapidly advancing, I predict that cash won’t even be present in the future. It will be ancient history as currency will turn virtual. Cash appears to be dying as I know, many of my friends use it solely for tipping bartenders and waiters/waitresses. This topic reminds me of Amazon Go stores which has taken out the “checking out” factor for grocery shopping. It relies on cameras and sensors to track what you’re buying. Afterwards, it will create a tab and charge your credit card. It raises the debate, should cash stay or go?
https://www.usatoday.com/story/tech/news/2018/01/21/amazon-set-open-its-grocery-store-without-checkout-line-public/1048492001/
I like cashless places. I get points/cash back, I don’t have to wait for the person counting change in front of me that being said, we should not obsolete cash as payment system. It doesn’t make sense for us to rid of it entirely basing on the unscientific explanation which is provided by retailers and corporates. Methods of payment are an established liberty granting to the customers
I found this article to be extremely interesting, especially because Philadelphia is the center of such a debate of whether cash should be legally required to be accepted at points of sale. I find that electronic payment methods are quick, convenient, and secure. However, it is important to not forget that there are people who don’t have access to these technologies or financial services.
I believe government involvement should only take place to promote consumer choice, which legislation forcing businesses to accept cash will do. There are many workarounds to this of course, such as prepaid debit cards/gift cards which can and should be leveraged. However, cash should always remain a valid payment option.
Although credit/debit card fraud may be mitigated with advancements in technology, there is no denying the reality of the threat to consumers in requiring the use of such cards. A cashless system may promote fewer robberies for cash, but creates a large target for bad actors that know every customer will be paying with some type of card.
When we consider the economic impacts of such a shift to cashless transactions, we can easily lose track of inflation and costs. For many, cashless payments are the norm; however, “cash is king” and is the most reliable form of tender. For all, a wider gamut of payment options will allow the most customers the ability to pay for goods and services.
I think it’s super ironic that stores are starting to NOT accept cash. I’ve only ever heard of stores accepting CASH ONLY. I don’t agree that having a bank account is a luxury however. There are plenty of free banks. There are also a lot of credit cards with low to none fees as well. I don’t think this is a huge issue at all and it is not a deterrent to technology. The only issue I see with this is efficiency. Paying in cash can take longer than paying with card. But some places have automatic cash dispensers now. I know supermarkets have it. I think the issue here is freedom of choice. People now want options. And, sometimes, cash CAN be quicker. If I’m at a crowded bar I’d rather pay in cash than wait for the bartender to swipe my card and give it back. If I’m in a rush at a restaurant I can just ask for the bill, pay in cash, and leave. I’m not advocating this at all, but I would think most stores would want cash anyways…you can report your numbers a little funny. But anyways, I think stores should accept both. There’s no reason to NOT accept cash.
At this point in time, I feel it is necessary and beneficial for stores to accept both payment methods. A cash-less store may drive away a decent amount of potential customers because some buyers may only have cash. Your post brought up a good point that some buyers, based on their circumstances, are not able to obtain debit or credit cards for themselves. Young kids and teenagers, who have not yet received permission to sign up for a debit card, will be left with no choice but to find the next best alternative store that do accept cash. At cash-less stores, there is no doubt that the wait time is relatively short and transactions are smooth because of technology innovations. But I don’t think our society is ready for cash-less business model yet.