Cashless Businesses Would Be Banned In Bill By Peninsula Senator

SAN MATEO COUNTY, CA — Businesses across California would be prohibited from going cashless under a bill set to be introduced in the State Senate this week.

The bill, SB 926, will be introduced by Sen. Jerry Hill, who represents San Mateo and Santa Clara counties. It's part of a growing push across the country to put a stop to cashless businesses, which critics say are discriminatory against low-income people who don't have access to bank accounts, credit or debit cards.

Instead, the bill would require retailers to accept cash payments — as well as card purchases — for any goods and services purchased in person.

"The result of retail stores and businesses that operate exclusively with cashless transactions is economic, racial and age discrimination," Hill said in a statement. "Low-income, unbanked individuals are barred from buying food, other goods and services from such places if they only have cash for payments."

Last month, New York City banned cashless businesses, citing the same equity issues that make it harder for some to access credit cards or mobile cash apps. The state of New Jersey and cities including San Francisco and Philadelphia have passed similar laws.

A 2017 FDIC survey found that 7.4 percent of California households were unbanked, including 20.5 percent of black households and 14.5 percent of Hispanic households.