llinois Requires Retailers to Accept Cash by 2028

Illinois will require retailers to accept certain cash payments, beginning Jan. 1, 2028.

This state law results from the Friday (July 31) signing of the Retail Cash Payment Act (HB 4592) by Gov. JB Pritzker, according to a Friday press release from the Office of the Governor.

The law “prohibits retailers from refusing to accept cash payments up to $500, or posting signage that cash is not accepted, with reasonable exceptions,” the release said.

HB 4592 was passed unanimously by the Illinois House on April 9, and it was passed unanimously by the Illinois Senate on May 19, according to the website of the Illinois General Assembly.

One of the Senate sponsors of HB4592, State Sen. Christopher Belt, said in a Friday statement: “Cash is still necessary for many working people and seniors across our state. This law ensures no one is turned away from making a purchase because they choose to pay with the money they have in their pocket.”

The “reasonable exceptions” allowed under HB 4592 include retailers with self-service checkout but at least one staffed cash register, late-night sales after 10 p.m. and retailers offering prepaid card systems that allow cash conversion, according to the press release issued by Illinois Senate Democrats.

When surveying similar laws across several states in 2019, PYMNTS reported that backers of legislation that would force retailers and restaurants to accept cash as a payment method said that businesses that don’t accept cash are discriminating against people who are unbanked. The backers of such legislation also worry about privacy and data security in a cashless world.

Critics of this kind of legislation contended that most customers pay electronically and that removing cash makes lines go faster, frees employees from counting and transporting cash to the bank, and reduces robbery and theft.

New York implemented a law in March that requires stores throughout the state to allow customers to pay in cash. The statewide law mirrors a similar New York City law that has been in effect since 2020. It prohibits food stores and other retail establishments from requiring customers to pay by credit card or use another cashless transaction method to complete their purchase. It also prohibits them from charging consumers a higher price if they pay in cash.