New payment law shocks retailers: No more surcharges or turning away shoppers at checkout

A new payment law has started today in New York to make it easier for people to pay with cash at store checkouts. The law is called New York Senate Bill S4153A, and it stops retailers from charging extra money to customers who choose to pay with cash, as reported by The Sun. The rule comes at a time when penny shortages are making cash transactions more difficult.

Cashless payments became more common during the Covid-19 pandemic, rising from 8% to 31% across the United States. Because of the penny shortage, retailers started rounding prices up or down instead of using exact cents. This rounding practice began after the shortage situation developed under orders during President Donald Trump’s time. Some retailers, including McDonald’s, faced public backlash when they started rounding prices.

Cash rounding rules

Under rounding rules, items ending in one or two cents are rounded down to zero cents, while items ending in three or four cents are rounded up to five cents. Even though menu prices stayed the same, the final payment changed because of rounding at checkout. The new law has led many businesses in the state to introduce rounding policies that benefit customers, as stated by The Sun. However, the law has some limits and does not apply to all types of payments.


Businesses do not have to accept cash for transactions above $20 if the payment is done over the phone, mail, or internet. But this exception does not apply if the payment is made on-site in person. The law also does not clearly exclude places like parking facilities, vending machines, live sporting events, or consumer goods rentals.

Penalty for breaking rules

The state can give civil penalties of up to $1,000 for the first violation of the law. Additional violations can also lead to penalties of up to $1,000 each time, according to The Sun report. Similar rounding laws already exist in other parts of the United States, including Indiana. In Indiana, retailers are allowed to round prices up or down to the nearest nickel.

How coins are graded

Coins are graded on a scale from 1 to 70, with 1 being the poorest and 70 being the best condition. Grades between 60 and 70 are called Mint State coins and are highly valued by collectors, as per the report by The Sun. Coins in MS67, MS68, and MS69 condition often sell for thousands at auctions. An MS-70 coin is extremely rare, especially for older coins.

FAQs

Q1. What does the new New York cash law mean?

The law stops shops from charging extra when customers pay with cash and sets fair rounding rules.

Q2. Do businesses have to accept cash for all payments?

No, businesses can refuse cash for payments above $20 if the payment is done online, by mail, or phone.