From Hoboken To New Brunswick, Cashless Cafés And Shops Are Breaking NJ Law, State Says

HOBOKEN, NJ — "We don't take cash," said an employee at the counter of a Hoboken café on Washington Street on Wednesday morning, when a reporter walked in and asked.

Apparently, they need to start.

From Hoboken to New Brunswick, an increasing number of businesses in New Jersey are refusing to accept cash — and they're breaking the law, the state said this week.

While the state eased up on enforcement of a 2019 state law during the height of the COVID pandemic, businesses are being fined if they don't comply.

On Tuesday, the New Jersey Office of the Attorney General announced that four businesses in the state were being fined for either refusing to accept cash, or for not disclosing that they added surcharges to customers for using debit cards.

Hidden Grounds Coffee, which operates coffee shops in Hoboken, Jersey City, and in New Brunswick, was issued two notices of violation and will pay $2,000.

But they're far from the only business in North Jersey that's been declining cash.

A staff member in Hoboken's Bluestone Lane said Wednesday morning, when asked, "We don't take cash."

When asked if the policy would change soon, the person at the counter said, "Not that I know of. They haven't said anything."

But there's no exception for chains that focus on cashless ordering for efficiency, said Robert Rowan of the Department of Community Affairs.

"There an no exception to the law stating businesses have to require cash. It was enforced less during the pandemic at times but is fully in place now. App based companies are not exempt either," Rowan said.

Who Is Exempt?

There actually are a few types of businesses that are exempt, but not bakeries and restaurants.

The exceptions apply to four types of business: municipal parking garages, car rental companies, some vendors inside airports, and any sports or entertainment venue with a seating capacity of 10,000 or more (see these exceptions here).

Prevents Discrimination

New Jersey passed its law banning cashless retailers in 2019, as did several other states.

The reason, lawmakers say, is discrimination: Some households don't have a credit card or even an account at the bank.

Pew Research cited statistics saying about 7.1 million U.S. households don’t have a bank account. That's 5.4 percent of U.S. households.

In New Jersey specifically, the rate was 4 percent just before the pandemic, Pew said.

"Rates are highest among low-income, Black, Hispanic and Native American households, as well as households headed by a person with disabilities, the FDIC survey shows," they noted.

In proposing a law in 2021, a Colorado lawmaker said that while some store owners may argue that cash carries germs, the same could be said of other forms of payment.

The Other Side

Officials have said they understand that businesses may not be trying to discriminate — but it's an unintended result.

For their part, the complaint against Hidden Grounds says that a state inspector was told by a shop employee that the store didn't want to accept cash because they had been robbed several times.

In fact, as reported in Patch last February, the owner of the café actually posted a kind note for burglars who'd stolen cash from their register, saying things would get better.

"We started thinking about how desperate someone was that they needed money for something, and what all thoughts had to have been going through their heads to decide on something so drastic," owner Anand Patel told Patch in February 2022.

As part of the agreement with the state, Patel must ensure that operators of his restaurant understand that they must accept cash.

"The Division of Consumer Affairs is actively enforcing this law and investigates businesses that do not comply," Rowan said. "Consumers should file complaints about businesses they believe are not following the law by filing an online complaint at https://www.njconsumeraffairs.gov/Pages/Consumer-Complaints.aspx. Consumers can also call 1-800-242-5846 to receive a complaint form by mail."

Other Companies Fined For Credit Card Surcharges

The 2019 law also forbids a business from requiring a customer to provide exact change.

And it says that if a merchant adds a surcharge for debit or credit cards, they have to tell consumers in advance or have signage. They can't add a surprise charge to their bill.

Notices of violation for not disclosing card surcharges in advance were issued to Ronnie’s Hot Bagels in Hillsdale, and Seymour’s Café based in Clifton. Each was levied a $500 civil penalty.

Also, in December, a notice of violation for not accepting cash as payment was issued to Skyviews of America, LLC which operates the Dream Wheel at the American Dream Mall in East Rutherford. Apparently, the company said customers had to buy a prepaid card to take the ride.

Find out more here about the New Jersey Consumer Fraud Act, NJSA 56:8-2.33(a).