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LA Is One Step Closer To Banning Cashless Retail Businesses
A customer pays at Colossus in Long Beach.
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Brian Feinzimer
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for LAist
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Topline:
The L.A. City Council voted Tuesday to direct staff to prepare a policy that would ban cashless retail businesses in Los Angeles. The vote was 13-0, with Councilmembers Marqueece Harris-Dawson and Nithya Raman absent.
Why it matters: Councilmember Heather Hutt introduced the motion in August. She said there are many residents who can’t get bank accounts or have been denied credit. She said seniors, immigrants, low-income communities of color, and young people who aren’t old enough to get a credit or debit card often rely on cash to pay for products and services. Hutt said businesses who only accept cards or contactless payments are systematically excluding some communities.
Hutt said cash is also important for domestic violence survivors who are trying to flee a dangerous situation. She said abusers can track card and bank activity, which can leave survivors in a difficult spot if they aren’t able to pay for gas, shelter or food with cash.
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The backstory: Some businesses have adopted a cashless policy as a way to cut costs and speed up transactions, but the COVID pandemic added another layer. Some stores stopped accepting cash and turned to contactless payments as a way to limit the spread of the virus.
What's next: The city attorney will prepare a plan similar to one in San Francisco, which began requiring all stores and restaurants to accept cash as a form of payment in 2019. If businesses still refused, they could be hit with a fine.
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