Are Businesses Required to Accept Cash? In These 10 States, It’s the Law

# Maryland Joins 10 States Requiring Businesses to Accept Cash

Maryland will become the tenth state to legally mandate that retailers accept cash from customers when it enacts its new law this Thursday. This legislative push reflects a growing concern about cashless business models that exclude unbanked and underbanked Americans from everyday commerce.

The shift toward digital payments accelerated during the pandemic. Many retailers adopted card-only or mobile payment systems for convenience and perceived safety. However, this trend created real barriers for millions of Americans who lack bank accounts or credit cards, rely on cash for budgeting, or prefer not to leave digital payment trails. Approximately 5.4 million U.S. households remain unbanked, according to Federal Deposit Insurance Corporation data.

Nine states already require cash acceptance: New Jersey, Pennsylvania, Massachusetts, Illinois, Connecticut, Rhode Island, New York, California, and Minnesota. Maryland now joins this coalition. These laws generally require retailers to accept U.S. currency for in-person purchases, though some include narrow exemptions for specific transaction types or businesses.

The specifics vary by state. California's law applies to all retail transactions at brick-and-mortar locations but exempts certain categories like hotels and restaurants in some versions. New York's law covers most retail establishments but allows exceptions for businesses operating primarily online or by phone. New Jersey permits limited exemptions for certain medical offices and service providers.

These state laws exist partly because the federal government has not created a national mandate. The U.S. Treasury confirmed in 2021 that businesses can refuse cash at the federal level, though state and local governments retain authority to set their own rules. This fragmented approach creates confusion for retailers operating across multiple states.

Advocates for cash acceptance laws emphasize financial inclusion and consumer protection. Forcing retailers to accept physical currency protects vulnerable populations who cannot access digital payment systems due to documentation requirements, credit history issues, or lack of steady addresses. It also addresses privacy concerns for customers uncomfortable with digital transaction tracking.

Business groups express mixed reactions. Some retailers argue that mandating cash acceptance increases operational costs, requires additional security measures, and complicates transactions. They maintain that most customers prefer digital payments and that accommodating cash creates inefficiencies. Others support the laws as a matter of basic accessibility.

The practical impact on consumers depends on where they live and shop. Someone in Maryland now has legal recourse if a retailer refuses cash, whereas a customer in a non-mandating state has no such protection. Interstate shoppers and businesses face complexity in understanding which rules apply where.

More states may follow Maryland's example as policymakers recognize the equity issues surrounding cashless commerce. Advocacy organizations continue pushing for national standards that would eliminate state-by-state inconsistency. For now, the patchwork of ten state laws provides limited protection while signaling a nationwide recognition that cash remains essential for financial inclusion.