Is It Time for a Cashless Society in the US?

Are you ready to live in a cashless society? CBS News reports that a Los Angeles councilwoman introduced a motion this month that aims to ban any retail business that refuses to take cash payments. The councilwoman's concern is that cashless businesses will create a non-inclusive economy for the people of LA and make it difficult for people to purchase necessities.

But LA is not the only location that would be affected, as this practice can have widespread ramifications, leading to a cashless society.

Those without bank accounts or credit cards will be at an even further disadvantage. According to the councilwoman, cashless payments can exclude people of color, low-income communities, young people not yet old enough for the credit age limit, and senior citizens who have not adapted to digital payments.

However, there are numerous potential benefits to cashless payment systems. These systems continue to see more benefits from the constant advancements in technology that flood every aspect of modern society. According to a report by Money Crashers, the advantages include:

• Fewer germs
• Reduced risk of robbery
• No counterfeit bills
• Less employee theft
• Faster service
• Less complicated cash deposits, armored car pickups, etc.
• Fewer banking hassles
• Simpler equipment
• Simplified bookkeeping
• More storage space
• Less human error

To help alleviate cashless payment complications, the FDIC explains that consumers can opt for prepaid cards and other alternative methods. Though everything in retail seems better going cashless, there is still divisiveness among consumers.

As an example, sweetgreen, which has been leading the way for completely autonomous fast-food locations, "experimented with going cashless in 2016 and reported that those stores recorded up to 15 percent more transactions an hour than its stores that took cash. Those locations also saved about two hours per day on cash management work, such as balancing register drawers and making bank deposits. This prompted the company to implement cashless operations at all stores, although it backed away from that after some customer backlash", as reported by AARP.

In response to customers' outcries, sweetgreen released the statement, "Everyone in the community needs to have access to real food.”

Even though there's often backlash against stores with these policies, it is perfectly legal for retailers to go completely cashless if they wish, according to federal law 31 USC Section 5103. Money Crashers also cites how "the Treasury Department confirms this interpretation of the law on its website, saying, 'Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise.'"