ANNAPOLIS — State lawmakers are considering a bill that would require businesses to accept cash payments for purchases less than $300, a move that supporters said keeps the economy open to all Marylanders.
“Cash is the staple of our country,” Del. Gregory Wims, D-Montgomery, said at a House hearing last month. “No person should be prohibited from using legal tender when trying to buy groceries at the supermarket or clothes at a clothing store.”
The bill, the “Consumer Protection – Retail Transactions – Cash Payments,” would address the growing number of incidents of merchants not accepting cash payments at brick and mortar stores, said Wims, who introduced the measure.
The legislation comes as more retailers refuse to accept cash, which bill supporters said could exclude undocumented people, low-income households and those without bank accounts from making purchases. Some opponents argue a cash mandate could heighten safety risks for retailers and increase the cost of running a business.
The bill would also prohibit merchants from charging additional fees for customers paying with cash. The requirement would not apply to purchases made online, over the phone or via mail. Among other provisions, it would not include transactions when merchants are operating at a temporary location, including at an event.
If passed, the legislation would take effect Oct. 1.
Advocates said the bill could help many low and middle-income families who use cash or those who have maxed out their credit cards and are unable to use them.
“We want to make sure that there’s not additional barriers for them to be able to participate in the economy,” said Lonia Muckle, a senior policy associate of the CASH Campaign of Maryland, a nonprofit organization promoting economic advancement.
The bill would also help people who don’t have bank accounts and ensure they’re able to buy essential items without a penalty, said Lynne Harris, who serves on the board of directors for the nonprofit Interfaith Works, which provides resources to low-income Montgomery County residents.
According to a 2023 Federal Deposit Insurance Corporation report, 3.4% of Marylanders don’t have a savings or checking account with a bank or financial institution.
Many undocumented people rely on cash to buy basic necessities, such as food, gas and medicine, said Pablo Blank, We are CASA’s director of immigrant integration.
“When businesses require electronic payments, they create a barrier for people who have the money in hand, but are denied the ability to use it,’’ Blank said at the February Economic Matters Committee hearing. “That is exclusion and that is wrong.”
Cailey Locklair, president of the Maryland Retailers Alliance, said there are many reasons why businesses are moving toward a cashless model.
She pointed to concerns, including employee safety, organized retail crime, robbery and theft. Many retailers are using “app based, mobile kiosk-kind of models that are designed to be cashless for efficiency and speed,” she said.
There are also other costs associated with using cash, such as cash registers, safes, deposit fees and staff time to count the money, said Locklair.
“For smaller retailers who operate on really thin margins, those costs can be significant,” she said.
Del. April Rose, R-Carroll and Frederick, said at the hearing the penalties were “very steep” and that it should be up to businesses to decide whether they want to be cashless.
Under the bill, the Office of the Attorney General’s Consumer Protection division would give merchants two opportunities to comply. Each violation is subject to a fine of up to $5,000 and up to $10,000 for each subsequent violation.
Wims, the lone sponsor of the bill, told Capital News Service he started working on the legislation because many of his constituents complained about not being able to use cash.
“These are hard working people,” he said. “They have cash, they work hard to get their money that they need to be able to buy goods and services.”
