Recently, Paul Dickson brought out a $20 bill at a baseball game in Camden Yards intending to purchase a beer.

To his surprise, another fan laughed and informed him that cash isn’t accepted at the ballpark anymore, according to Dickson.

At 85 years old, Dickson is a fan of the Orioles, while his son and grandson support the Nationals. To buy a $17.50 beer, he ultimately used his credit card. He was already aware that Nationals Stadium has gone cashless, but he was unaware that Camden Yards had also made the same change.

Dickson, who writes books, doesn’t mind using credit cards or other payment forms. Before moving to an independent living facility, he managed most of his payments through auto pay from his checking account. He still occasionally writes checks and has maintained a PayPal account for several years.

However, he feels annoyed by the growing restrictions on his ability to use cash as he sees fit.

“I’m not furious; it’s not a matter of injustice, but it feels as though I’m losing my choice to pay with cash,” he said. “It’s like businesses are saying they’re taking away my option for their convenience.”

Are cash and checks becoming obsolete?

Cash and checks, once the preferred payment methods, are now becoming less acceptable.

Just like Camden Yards, a majority of Major League Baseball stadiums and various other professional sports venues have adopted cashless policies.

In March, three individuals sued the National Park Service when they were unable to pay for entry at some national parks with cash. The agency had announced in 2023 that many of its sites would stop accepting cash for entry, following new policies from the U.S. Treasury aimed at minimizing cash and check transactions. This lawsuit remains unresolved.

Additionally, stores using Amazon’s Just Walk Out technology—including some at NFL stadiums, college campuses, and airports—do not accept cash or checks. Although Amazon Go convenience stores began taking cash in 2019, they still do not allow checks. Amazon Fresh grocery stores likewise take cash, but not checks.

“There’s a definite trend against cash,” remarked Jay Stanley, a senior policy analyst at the American Civil Liberties Union’s Speech, Privacy, and Technology Project.

Cash loses value

The trend towards cashless operations accelerated during the COVID-19 pandemic as many businesses aimed to protect their staff by avoiding cash transactions, according to Ted Rossman, a Senior Industry Analyst at Bankrate. However, some businesses had already started moving in this direction, arguing that eliminating cash was more efficient.

“Speed and ease of transaction are often cited as key reasons, particularly in stadiums that have gone cashless,” Rossman said. “Businesses promote this change as making transactions faster for everyone since staff won’t have to handle cash.”

Cash is also seen as a burden for businesses, Rossman noted. Employees must spend time balancing cash registers at the end of shifts, and there are expenses associated with transporting the cash to banks, either by an employee or an armored vehicle service.

Moreover, businesses face the added potential threat of theft, whether from external criminals or dishonest employees, Rossman added.

Some businesses are also moving away from accepting checks. Target has stopped accepting checks as of July 15, citing reduced usage. Similarly, Aldi and Whole Foods do not take checks.

Advantages of cash

Despite the decline of cash, some advocates argue it is still a crucial payment method for consumers.

“Cash provides an important option for choice, privacy, equity, and accessibility,” stated Ruth Susswein, who directs consumer protection efforts for Consumer Action, a national advocacy and education organization.

During a recent trip to Atlanta, Susswein noticed a sign at an ice cream shop: “We accept whoever you are, but we don’t accept cash.”

She emphasized that consumers should have the freedom to choose their payment methods.

Declining use of cash and checks

The adoption of cash and personal checks has seen significant declines in recent years, while the preference for credit and debit card payments has grown, according to the 2024 Diary of Consumer Payment Choice published annually by the Federal Reserve Financial Services FedCash Services.

Some findings from the study include:

• Cash
  • Cash remained the most popular payment method for in-person shopping among consumers. It is especially favored by individuals from low-income households and those aged 55 and above.
  • In 2023, individuals under 55 utilized cash for only 12% of their payments, while 22% of those aged 55 and older opted for cash. Notably, it was the first instance in the Diary’s history where cash was not the predominant payment method for smaller transactions of $25 or less.
  • On average, consumers carried $74 in cash within their pockets, purses, or wallets, an increase from the pre-pandemic figure of $60.
  • Households earning less than $50,000 annually used cash for 28% of their transactions, in contrast to 13% for those with incomes above $50,000.
  • The use of personal checks decreased to 3% of total payments in 2023, down from 4% in 2021 and 2022, and 7% in 2020. Automated Clearing House (ACH) payments, or electronic check payments, made up 13% of all transactions.

   

  The research, conducted in October 2023, was the first since the CDC announced the end of the Covid-19 emergency in May 2023. During this period, many consumers became accustomed to digital and online payment methods while staying at home and making remote purchases.

   

  The findings suggest that the pandemic has had enduring impacts on consumers’ payment behaviors, according to the study’s authors.

  Kennedy Ream, 23, from Indiana, mentioned that she frequently used cash in her teenage years but has switched to using credit cards over the past four years.

  “I don’t want to take the time to go to the bank to withdraw cash,” she said.

  Similarly, Tony Brunner from Virginia finds it much easier to use credit cards and digital payment applications, eliminating the need for bank visits.

  “I’m fully on board with the digital economy,” stated Brunner, who primarily uses his phone and Google wallet for payments.

   

  The Rise of Plastic

  Since the 2016 Federal Reserve Diary of Consumer Payment Choice, the use of credit cards has nearly doubled, rising from eight payments in 2016 to 15 in 2023. Over the same period, cash payments dropped by 50%, from 14 payments in 2016 to seven in 2023.

  The growing use of debit and credit cards between 2022 and 2023 led to over 60% of payments being made using credit (32%) and debit cards (30%).

  Are Businesses Required to Accept Cash?

  According to the Federal Reserve, despite the wording on currency stating, “this note is legal tender for all debts, public and private,” there is no legal obligation for businesses to accept cash.

   

  “There is no federal law requiring a private business, person, or organization to accept cash nor coins for goods or services,” states the Federal Reserve on its website. “Private businesses are allowed to create their own policies regarding cash acceptance unless a state law mandates otherwise.”

   

  Jay Zagorsky, an economist and associate clinical professor at Boston University’s Questrom School of Business, elaborates on this topic: the crucial word is “debt.” If a business informs customers in advance that they do not accept cash, then no debt is incurred, he explains.

  For example, many airlines have adopted cashless policies for in-flight purchases, necessitating credit or debit cards. If a customer only has cash, they cannot buy drinks, and thus, no debt exists, according to Zagorsky. Similarly, if a gas station specifies they do not accept cash, a customer does not pump gas, so again, there is no debt.

  “No debt is created, so they can legitimately say sorry” no cash, said Zagorsky, whose upcoming book is titled “The Power of Cash: Why Using Paper Money is Good for You and Society.”

   

  Some Businesses Remain Cash-Only

  Nevertheless, certain businesses still prefer cash payments exclusively.

  Recently, Dickson noted that at his favorite local pizza shop and barber in Kensington, Maryland, neither accepts credit cards, opting only for cash – though checks are also accepted, cash is preferred.

   

  “It’s like moving from one world to another,” remarked Dickson.

   

  In some regions, businesses are legally mandated to accept cash or have been pressured to do so by customer preferences.

  Sweetgreen, a national salad chain, reinstated cash payments in 2019 after experiencing customer pushback against its cashless policy.

  Additionally, multiple states, including Massachusetts and Colorado, as well as cities like New York, Philadelphia, and Detroit have enacted laws prohibiting businesses from going entirely cashless, with many others contemplating similar measures.

  Some of these laws have exceptions, permitting larger venues to operate cashless or requiring reverse ATMs that convert cash to prepaid debit cards. Businesses that contravene these cash ban laws may face penalties. Moreover, reverse ATMs often come with service fees, according to Rossman.

   

  Lawmakers implemented these requirements to safeguard consumers’ rights to use cash.

  Advocates assert that cash remains essential for many Americans, being their sole method to settle bills and a critical backup when electronic payment systems fail during a natural disaster.

  Credit Cards Can Cost More

  The surge in credit card use and the tendency of businesses to raise prices to cover card transaction fees negatively impacts all consumers, noted Stanley.

  He argues that it is fairer for individual customers using credit cards to bear the associated costs.

  Cash Aids Budgeting and Curbing Spending

  Using cash can also assist consumers in saving money, according to Zagorsky.

  “Paying with cash encourages people to spend less overall,” he explained. This phenomenon is referred to as the pain of paying; handing over cash feels more painful than swiping a credit card, which lacks the same tangible connection, he pointed out.

   

  As an illustration, Zagorsky mentions a recent trip to a liquor store where he intended to purchase a $35 bottle of wine for a dinner party but realized he did not have enough cash upon entering the store.

  “I ended up leaving with five bottles of wine, totaling $150,” he recounted, having paid with his credit card. “Without the cash constraint, I thought, ‘Oh, that looks good. I’ll get this one too!'”

  Limited Cash Payment Options Disadvantage the Poor and Unbanked

   

  According to Stanley, the trend of businesses going cashless creates challenges for lower-income consumers, many of whom lack bank accounts and tend to come from marginalized groups.

  “Transitioning to a cashless system is detrimental to privacy and particularly harmful for people with low incomes. It’s even more challenging for people of color, the homeless, and undocumented individuals,” he added.

   

  Susswein from Consumer Action echoed this, stating that individuals without good credit scores often find it difficult to engage with retailers that refuse to accept cash.

  “These individuals often have limited or no options for transacting with businesses that don’t take cash,” she explained.

  As a result, some may have to resort to high-fee check-cashing services or even an informal economy, Susswein noted.

  Stanley highlighted that people of color are often underbanked, meaning they may not have access to accounts that facilitate electronic payments or provide a credit or debit card.

   

  According to Zagorsky, consumers who need to load cash onto a debit card because they lack a bank account or credit card end up paying additional fees.

  Stanley remarked that rural communities and smaller towns are particularly susceptible to the negative impacts of cashless transactions.

   

  The shift to cashless operations may also negatively impact service workers who depend on cash tips, including valets, wait staff, and hotel cleaners, according to Stanley.

  The Privacy Benefits of Cash

  Stanley emphasizes that cash helps safeguard consumer privacy. He explains that when a purchase is made via credit card, the data is shared among multiple entities.

   

  “While some of the data about your purchases may seem trivial—like buying a loaf of bread—other transactions can reveal more sensitive information about your life,” he noted.

  Stanley, Zagorsky, and Susswein assert that cash can also provide a crucial safety net.

  “For those dealing with situations like domestic violence, cash can be a crucial resource,” Stanley added.

   

  Cash is Essential During Emergencies

  Zagorsky pointed out that cash remains reliable during emergencies—such as natural disasters—when electronic payment systems may fail.

  <p”When I recently traveled in California, I made sure to carry extra cash in case of an earthquake,” he mentioned.

   

  “If an earthquake disrupts power, you won’t be able to use all those digital payment options—there won’t be PayPal or even debit and credit cards available.”

  Are We Shifting Towards a Cashless Society?

  Both Zagorsky and Stanley believe that while we aren’t heading towards a fully cashless or checkless society just yet, the path is concerning. Zagorsky explained that businesses are opting out of accepting checks primarily to avoid fraud, which is an advantage. Many also allow automated payments from checking accounts.

  However, transitioning to a completely cashless environment could exclude millions of Americans who either lack access to credit or simply prefer cash transactions.

   

  “We’re not suggesting cash should be the exclusive payment method,” Stanley clarified. “Rather, we believe it’s important to maintain cash as an option, even if it entails some costs and inefficiencies.”

  “There’s a counter-movement underway,” he added.

  Chris Chang, a YSL News video producer, contributed to this report. Betty Lin-Fisher is a consumer reporter for YSL News. Follow her on X, Facebook, or Instagram @blinfisher.