Cashless policies have drawn critics in other cities as well, who say it discriminates against the poor and people of color

This article is more than 1 year old

This article is more than 1 year old

Cashless businesses would be banished from New York City under new legislation introduced on Wednesday that is aimed at protecting the poor.

A growing number of businesses in New York and cities around the country have adopted cashless policies, refusing to accept paper currency and requiring customers to pay with debit or credit cards.

The trend has spread from hipster coffee shops to popular burrito and salad chains, with business owners saying it’s quicker and easier to dispense with cash.

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But city councilman Ritchie Torres, who introduced the legislation to prohibit the practice, said it freezes out people who don’t have access to bank accounts and credit cards, who are more likely to be low-income and people of color.

The same concerns have prompted proposed bans in Philadelphia and Washington DC.

Torres called the proposals a “new frontier” of anti-discrimination law, needed to prevent a “gentrification of the marketplace” by businesses unwilling to accept cash.

“A cashless business model has an exclusionary effect on the impoverished, the homeless, the underbanked, the undocumented,” he told the Guardian.

Studies have found that nearly 12% of New Yorkers do not have bank accounts. Poor people may have trouble maintaining an account because they require a minimum balance or charge fees, while credit cards require a good credit score. Unauthorized immigrants cannot open an account at many banks if they lack proper ID.

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“If you live in a bubble of wealthy white privilege, you have reason to believe that everyone has a card. But there’s more to New York City,” Torres said.

But Andrew Rigie, head of the New York City Hospitality Alliance, said there should be a “fair balance” that does not unduly burden businesses.

“There are operational and worker safety benefits to running a cashless restaurant, however, they should not result in discriminating against people who don’t have credit cards,” he said.