New polling shows a large majority of Americans would support legislation that would force businesses to accept cash as a form of payment. Data, however, shows that more businesses are taking only credit or debit cards or digital payment forms at the point of sale.
The poll was conducted by the Siena Research Institute at Siena University in New York on behalf of the Payment Choice Coalition, a group that includes companies that operate automated teller machines (ATM) and provide secure cash logistics and similar services. It showed overwhelming support for a cash option.
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Desire for cash payments
Among the more than 5,500 people surveyed over several months, 84% opposed the U.S. becoming a fully cashless society.
And even among those who said they don’t use cash themselves, 87% said they believe cash should remain a payment option.
“For several reasons, people want to have the option to use cash, and the Siena survey shows overwhelming support for requiring businesses to accept it as a valid payment,” Jeff Thinnes, a Payment Choice Coalition representative, said in a statement.
Despite more businesses going cashless, currency remains the most-used payment method. The poll found 85% of respondents had paid for something in cash in the last 30 days. That’s compared to 75% who used credit cards and 74% who used debit cards.
Mobile banking, digital apps and checks rounded out the top six payment methods.
The poll also found people see cash as an easier way to pay; 76% said businesses that do not accept cash make it too difficult for some people to buy what they want. Another 70% also found using cash makes it easier to stay within a budget.
“Seeing ‘no cash accepted’ signs when people walk into retail establishments is both an affront to peoples’ right to choose how to pay or who want control over their personal data,” Thinnes said. “It’s also discriminatory against those who fully depend on cash.”
The survey also found Americans view cash as a significant security benefit. Of those surveyed, 94% said it’s important for the U.S. to keep cash available in case of national security threats, especially threats that could disrupt electronic payment forms.
Another 86% of respondents said digital payments increase the risk of identity theft.
Proposed legislation
Eighty-five percent of those surveyed said they supported the Payment Choice Act, which would require retail businesses to accept cash for any purchases of $500 or less and would ban businesses from charging more for paying in cash.
The Senate version of the bipartisan bill, introduced by Sen. John Fetterman, D-Pa., and Sen. Kevin Cramer, R-N.D., has been awaiting a committee vote since July. A House version, sponsored by Rep. John Rose, R-Tenn., has been stalled in committee since last February.
“Forcing the use of credit and debit cards or imposing premium prices on goods and services paid for with cash limits consumer choice,” Cramer said. “Americans should have the option of using cards or cash, but they should be the ones who make that choice.”
It’s unclear whether either bill has enough support to pass and whether President Donald Trump backs the proposal.
Supporters say the legislation would especially help the 4% of households, or 5.6 million people, who do not have a checking or savings account.
Businesses going cashless
The payment processing company Clearly Payments says 40% of U.S. businesses no longer take cash as a form of payment.
That number grew rapidly during the COVID-19 pandemic, when the number of cashless businesses rose from 8% to 31%.
There are several reasons why businesses move away from cash other than reducing the spread of the coronavirus during the pandemic.
Going cash-free diminishes the risk of theft, either by robbers or employees. It also reduces the risk of human error in calculations as well as of banking issues. Cash requires business owners to make physical deposits, while bank transactions are more streamlined with cashless systems.
Despite the ongoing trend of going cashless, 57% of businesses recently polled said they never expect to go fully cashless.
