A check on Miami’s digital economy: County may force retailers to accept cash

A Miami-Dade County proposal that would require shops, restaurants and other retailers to accept cash moved forward on Tuesday, responding to concerns about low-income and elderly people without access to credit cards or digital payment devices.

“This is just giving people the option of using legal tender of the United States of America — to make sure they can use cash if they choose to,” said Commissioner René Garcia, who sponsored the proposal. “We have to have that balance.”

A committee voted unanimously for the proposal that would establish $100 fines for Miami-Dade retailers that don’t accept cash. It will next have to go before the full commission for a vote.

No federal law requires businesses to accept cash, but some state and local governments mandate it. New York City requires retailers to accept bills $20 and under for transactions, with similar laws in Philadelphia, San Francisco, New Jersey and Massachusetts. The laws are part of an effort to protect people without access to banking, credit cards or other financial options.

A 2021 report from the Federal Deposit Insurance Corporation estimated about 5% of all households in the United States fall into the “unbanked” category, with South Florida a bit lower at 4%.

Business groups opposing the cash requirements call them government intrusion, instead of letting market forces dictate whether accepting cash makes sense.

“There are a number of reasons a business owner might decide that not accepting cash as a form of payment is best for them,” said Holly Wade, director of research at the National Federation of Independent Business, which represents small businesses across the country. “It shouldn’t be up to elected officials to decide what they prefer.”

Will Miami-Dade require retailers to accept cash?

Before becoming law in Miami-Dade County, Garcia’s legislation must pass the full commission, with a vote expected within the next several weeks.

Garcia, who is chairman of Miami-Dade County’s Republican Party, said he will continue reworking the legislation ahead of the final vote, with the possibility of waivers for some businesses from following the cash requirements. At the Airport and Economic Development Committee, commissioners raised concerns about government permitting offices, app-based parking systems and airport vendors.

Garcia’s proposal already exempts service providers such as architects and lawyers, as well as online sales. The law would require retailers to accept $20 bills and under, so stores could still turn away customers trying to pay with larger bills.

Who gets left out when a store won’t accept cash?

The legislation is similar to rules in some big cities and states that attempt to address the issue of low-income and elderly people being left out of an increasingly cashless retail industry.

“We understand that’s the migration of where we are going,” said Oliver Gilbert, the commission’s vice chairman. “But we also understand we’re getting there in different paces. Minority communities and elderly communities are getting there at a different pace.”

Susan Solman, an associate professor at Florida International University who teaches about disability issues, said businesses that won’t accept cash can also be excluding people with disabilities that prevent them from using payment apps on phones.

“You have people with visual impairments who know the feel of bills,” she said. “It excludes them too.”

The committee discussion of the legislation touched on security concerns from both sides of the issue — some businesses not wanting to accept cash for fear of a robbery, and some consumers leery of handing over credit cards to a cashier.

“I’m mindful of going into gas stations or corner stores, and literally turning over all of my information to places where I feel uncomfortable,” said Leroy Jones, director of the Neighbors and Neighbors Association, a Miami nonprofit that focuses on economic development in low-income neighborhoods. “I’m a dinosaur.”

This story was originally published April 12, 2022 at 6:47 PM.