Opinion: Why retailers in Washington should embrace cash

Mark Harmsworth argues retailers in Washington should continue accepting cash to support unbanked residents, ensure equity, and maintain access during outages or digital disruptions.

Mark Harmsworth believes that while innovation drives our economy, it must not be exclusive

Mark Harmsworth
Washington Policy Center

In an era dominated by digital payments, the rise of cashless retailers raises a critical question: Should Washington businesses be allowed to turn away customers who prefer or need to pay with cash? As technology advances, it’s easy to overlook the millions of Americans who rely on physical currency. In Washington state, where innovation thrives, retailers must recognize that accepting cash isn’t just a courtesy, it’s essential for economic equity and broad customer access.

Federal law doesn’t mandate cash acceptance. The Federal Reserve states, there’s “no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services.” However, this freedom doesn’t mean cashless policies are harmless. According to a 2023 FDIC survey, 4.2% of U.S. households, about 5.6 million, are “unbanked,” lacking savings or checking accounts often due to minimum balance requirements or financial instability. These individuals, disproportionately from low-income or marginalized communities, depend on cash to participate in everyday commerce.

Washington’s local politicians’ responses highlight the urgency. In 2023, King and Snohomish County councils passed ordinances requiring retailers in unincorporated areas to accept cash, precisely to safeguard unbanked residents. Snohomish County Councilman Jared Mead stated, “As we continue to advance technologically as a society, we need to take care not to leave behind those who are on the margins and may not have access to certain resources like banking and electronic services.” This forward-thinking measure ensures that technological progress doesn’t sideline vulnerable populations, allowing them full access to goods and services

On the national stage, bipartisan efforts underscore the broader consensus. U.S. Sens. Kevin Cramer (R-North Dakota) and John Fetterman (D-Pennsylvania) introduced legislation to preserve payment choice, affirming that shoppers should decide between cards or cash without surcharges. Sen. Cramer stated, “Americans should have the option of using cards or cash, but they should be the ones who make that choice.” Echoing this, Sen. Fetterman added, “It’s simple: if you’re open for business in America, you should take U.S. dollars.”

For retailers, the advantages extend beyond compliance. Accepting cash broadens the customer base, including tourists, seniors, and those wary of data breaches in digital transactions. It also hedges against system outages, think of the 2021 global tech glitches that halted card payments. Moreover, cash transactions are immediate and fee-free, reducing processing costs compared to credit cards. In Washington, where states like Colorado and New Jersey already mandate cash acceptance statewide, forward-looking businesses can lead by example, enhancing their reputation as community oriented.

Ultimately, while innovation drives our economy, it must not be exclusive. Retailers who accept cash honor the principle of choice. By doing so, they not only comply with emerging norms but also build a more resilient, inclusive marketplace. Washington’s retailers have the opportunity to ensure every dollar counts for every customer.

Mark Harmsworth is the director of the Small Business Center at the Washington Policy Center.