A proposal requiring retailers to accept cash for purchases up to $500 is moving through the Ohio legislature. While much of the debate has focused on how this would affect retailers— especially those relying on self-checkout—the bill is designed to make compliance as seamless as possible.
The measure mirrors a bipartisan federal effort introduced last July that would require retailers nationwide to accept up to $500 in cash. Several states have already adopted similar laws, but Ohio’s version includes additional provisions aimed at minimizing the burden on businesses.
The bill’s sponsor, David Thomas, says the law is intended to ensure “all Ohioans have the ability to use cash” while also accommodating retailers’ operational needs. Notably, the proposal requires only one cash-accepting register or payment option per store.
The bill would also prohibit charging cash-paying customers more than those using digital or card payments. This could be a shift for many retailers that currently impose higher prices on credit card transactions to cover the interchange fees.
The Rise of Self-Checkout
The initiative appears to be fueled in part by the rise of self-checkout lanes, which offer advantages for both shoppers and retailers.
“I’ve not heard any rumblings about retailers not wanting to take cash at all, but you can see it coming,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Self-checkout stations that don’t have to accept cash and dispense change are less expensive than card-only machines and require much less maintenance.”
Under the proposal, violations by retailers would not result in fines or criminal penalties. Instead, they would be classified as unfair or deceptive practices, giving customers the right to sue.
Other states that have enacted similar legislation have found enforcement challenging. When Colorado Governor Jared Polis signed the state’s bill into law in 2021, he warned that the measure would be difficult to enforce. An investigative reporter in Denver later found no evidence of Colorado businesses being penalized for violations.
Serving the Unbanked
The 2023 FDIC National Survey of Unbanked and Underbanked Households found that 4.2% of Ohio households don’t have a bank account, and nearly one in five have limited access to mainstream credit.
“I don’t think you will ever see big box retailers ever go completely cash free,” said Apgar. “That’s for one reason: the nation’s 25 million unbanked consumers.”
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