Philadelphia vetoes CASH ban…retailers must accept greenbacks

cash


A small win in the war on cash.  According to this USA Today report Philly businesses will no longer be able to ban cash.

To retailers who say ‘no cash,’ Philadelphia’s city council is saying no dice.

Philadelphia’s city council voted Thursday to require most local businesses to accept cash as payment, pushing back on a growing trend in which restaurants and retailers accept credit and debit cards only.

“There’s a reasonable segment of people who wouldn’t be able to patronize those stores because they don’t have any kind of credit or debit card,” said Councilman Bill Greenlee, who introduced the bill. “It’s setting up an us and them kind of situation . . .And those people tend to be a little lower income, and also minority and immigrant. I don’t think that’s the kind of message we want to be sending.”

Mayor Jim Kenney is reviewing the bill, says Lauren Cox,  a spokeswoman for the administration.

“We share the concerns of council members about the significant number of Philadelphia residents who are unbanked and underbanked,” she said in an email. “That said, we remain concerned about how this measure impacts innovation in our retail sector. We constantly seek to strike the balance of growing our economy while ensuring our growth is inclusive … We’ve spoken to council members about a number of various options, and we anticipate further discussions before the mayor needs to act on the legislation.”

A rising number of retailers are cutting out cash to speed up transactions, reduce the chance of theft, and accommodate the increased use of credit and debit cards, as well as digital wallets like Apple Pay and Google Pay, to buy services and products.

Cash purchases were down to thirty percent of all retail transactions as of last year compared to 40 percent in 2012, according to IHL and the Federal Reserve.

Roughly 25 percent of Americans made all or a significant number of retail purchases with cash in 2016, 11 percent fewer than those who favored cash five years earlier, according to a Gallup poll. And millennials in particular are making the shift, with 21 percent of those 23 to 34 years old saying that most of their transactions were in cash, down from 39 percent five years before.