Florida representative Dr. Joel Rudman has proposed a new bill that would ensure most businesses in the state accept cash payments—or face hefty fines.
According to CBS News, it was Rudman’s personal experience that propelled him to take action. While attending a concert in June, it was impossible to find a business that accepted cash, and the encounter—coupled with concerns about the traceability of electronic transactions—led him to file the bill.
If it goes through, businesses who won’t accept cash at the point-of-sale may be subjected to a fine, which “would start at $2,500 for a first offense, increase to $5,000 for a second, and peak at $10,000 for any additional violations,” CBS reported.
A More Contactless Future
The cashless trend has been intensifying, with many businesses worldwide seeking to reduce their reliance on physical currency. But while this change in behavior to contactless payments has taken center stage over the past few years, cash is still very prevalent.
As we previously covered, Detroit’s City Council voted to prevent businesses from not refusing to accept cash, following in the footsteps of other cities, including New York and Philadelphia who took similar stances. And in July, consumers in Australia protested against digital payments and boycotted the use of debit cards and other transactions for a single week that month, in an effort to bring more awareness of their right to use cash.
Promoting Inclusion by Enabling Cash Transactions
Businesses are able to reach a wider consumer base and ultimately generate more sales by offering all forms of payment methods. While digital payments are still growing prominence, they aren’t the final word, according to Elisa Tavilla, Director of Debit at Javelin Strategy & Research.
“Digital payments have become more prevalent, especially since the pandemic when people avoided using cash for hygienic reasons,” Tavilla said. “Although cards and other digital payments provide benefits, like convenience, efficiency, and security, cash is still essential for some consumer segments, in particular the unbanked. So it’s important that businesses offer cash as a payment option, to ensure financial inclusion.”
Tavilla added that this doesn’t necessarily mean that cash has to be accepted directly at checkout.
“I attended a concert at the Xfinity Center in Massachusetts last summer where vendors didn’t accept cash either,” Tavilla said. “But there were reverse ATM machines all around the venue to accommodate cash-preferred customers.”
Adopting such methods are a happy medium as they can promote inclusion, while making it easier for merchants to process transactions.
