Illinois' New Cash Acceptance Law Signals a Growing National Trend

Retailers in Illinois have a little more than a year to prepare for an important change. Beginning January 1, 2028, the state's Retail Cash Payment Act will require many retailers to accept cash payments for purchases under $500, making Illinois the latest state to reinforce the importance of payment choice.

While the law applies specifically to Illinois, its impact reaches much further as more states and local governments consider similar legislation.

What the Law Means for Retailers

Illinois is not the first jurisdiction to address cash acceptance. New Jersey was one of the first states to require businesses to accept cash, while cities including New York City, Philadelphia, and San Francisco have adopted similar measures. 

As for Illinois retailers, this latest legislation reflects a broader shift toward protecting payment choice. While digital payments continue to grow, lawmakers are recognizing that cash remains an essential payment method for millions of Americans.

Under Illinois' Retail Cash Payment Act, retail businesses that accept in-person payments from customers must accept cash for purchases under $500 and cannot post signs stating that cash is not accepted. However, the law includes several exceptions.

Understanding the Exceptions

While the Retail Cash Payment Act establishes cash acceptance requirements, it also recognizes that certain situations require flexibility. The law includes exceptions for businesses that do not accept in-person payments and specific types of transactions.

For retailers, the key takeaway is that the law is designed to preserve payment choice while allowing reasonable accommodations for situations outside of a business’s control.

Why Cash Acceptance Still Matters

Consumers choose cash for many reasons. Some prefer it as a budgeting tool, while others rely on it because they do not have access to traditional banking services. Cash also provides privacy and remains a dependable payment method during technology disruptions, network outages, or other situations where electronic payments may be unavailable.

Similar efforts are also gaining attention at the federal level through the Payment Choice Act, which aims to protect consumers’ ability to use cash as a payment option and ensure businesses continue to support payment flexibility.

The Business Benefits of Accepting Cash

Beyond compliance with emerging legislation, accepting cash offers several advantages for retailers.

Serve every customer. Accepting cash ensures businesses remain accessible to all customers, including those who are unbanked, underbanked, or simply prefer using physical currency.

Support business continuity. Electronic payment systems are not immune to outages or connectivity issues. Cash allows transactions to continue even when technology cannot.

Build customer trust. Offering multiple payment options demonstrates a commitment to customer convenience and inclusivity.

Stay prepared for future changes. Illinois is one of several jurisdictions that have adopted cash acceptance requirements. As payment choice continues to gain attention nationwide, retailers that already support cash acceptance will be better positioned should similar legislation expand to additional states.

Making Cash Acceptance More Efficient

Counting tills, preparing bank deposits, transporting funds, and reconciling cash all require time and labor. Fortunately, today's cash handling technology has transformed those processes. 

Smart safes, cash recyclers, and automated cash management solutions help retailers: 

• Improve accuracy

• Increase visibility

• Reduce manual touchpoints

• Streamline daily operations

These tools make accepting cash easier while allowing employees to spend more time serving customers.

Supporting Payment Choice

Illinois' new law reflects a principle a significant number of Americans actively support: Consumers should have the freedom to choose how they pay.

That belief is at the heart of the Payment Choice Coalition, a nationwide alliance working to preserve payment choice. The coalition advocates for policies that protect consumers' ability to use cash while promoting financial inclusion and equal access to commerce.

The data reinforces why payment choice remains an important issue. A nationally representative survey of 5,700 Americans found that 85% support the Payment Choice Act, 94% believe cash is vital for national security, and 92% say cash provides better privacy protection.

While Illinois' Retail Cash Payment Act may only apply within one state today, it represents a broader conversation taking place across the country. For retailers everywhere, now is the time to evaluate cash handling processes, stay informed about evolving legislation, and continue offering customers the payment choice they value.

As a member of the Payment Choice Coalition, Loomis supports efforts that keep payment options open for businesses and consumers alike.