WASHINGTON–A consortium of 51 consumer, privacy, and civil rights groups have sent a letter to Senators Kevin Cramer (R-ND) and Bob Menendez (D-NJ) and Rep. Donald M. Payne, Jr. (D-NJ) expressing support for legislation they have introduced, the Payment Choice Act, H.R. 2650 and S. 4145, which would prohibit brick-and-mortar retailers from refusing to accept cash or charging consumers more for paying with cash.
“The number and diversity of the organizations that support this legislation shows how fundamental the ability to pay with cash is for people in the United States,” said Susan Grant, director of Consumer Protection and Privacy at Consumer Federation of America. “It should be everyone’s right.”
In the letter, the groups pointed out that cashless businesses unfairly disadvantage consumers in many ways. According to a report released by the Federal Reserve in May 2020, nearly a quarter of U.S. adults were either underbanked or unbanked last year. These individuals, who are more likely to have low income, have less education, or be in a racial or ethnic minority group, have little access to noncash forms of payment. Furthermore, consumers who are forced to pay for goods and services in cashless transactions may incur added fees or other expenses, the organizations said.
Well-Deserved Accusations
“Businesses that refuse to accept cash face well-deserved accusations of discrimination because they are limiting equal access to the same goods or services,” said Linda Sherry, director of national priorities for Consumer Action. “These bills would give shoppers the right to pay with cash but do nothing to stop buyers from using credit, debit and prepaid cards if the businesses they patronize accept them.”
According to the organizations, privacy is another concern, as noncash transactions generate vast amounts of data about consumers and the purchases they make, which are available to digital marketers and advertisers engaged in developing and refining increasingly sophisticated techniques to identify and target potential customers.
“Paying with cash provides consumers with a lot more privacy than do electronic forms of payment and reduces the amount of personal information at risk of data breaches,” said Grant.
It’s About Having the Choice
Eighty-two percent of consumers in the study felt that it was important for merchants to allow cash payments. “It’s not about rejecting other forms of payment, it’s about having the choice to use cash when it suits your needs,” said Sherry.
The organizations added the issue has become even more prominent in the wake of the COVID-19 pandemic, as some retailers are citing the potential to transmit the virus through consumers’ and salespeople’s handling of cash as a reason to require payment with debit or credit cards, smartphone apps, or other digital or electronic methods.
“There is no evidence that cash presents any more danger than credit cards or other forms of payment, however,” the groups said. “Keeping one’s distance, using hand sanitizer and wearing a mask are basic precautions that should be taken in all retail transactions to prevent the spread of the coronavirus.
The groups further noted the economic dislocations caused by the pandemic have fallen most directly and most harshly on low-income populations, people in inner-city neighborhoods and in rural areas, the unemployed and underemployed, the elderly, and racial and ethnic minorities.
“It is crucial for people to be able to obtain necessities at their local stores and restaurants without being turned away because they want to pay with cash,” the letter states.
