Want to read Slashdot from your mobile device? Point it at m.slashdot.org and keep reading!

 



Forgot your password?
typodupeerror
×
The Almighty Buck Businesses United States

NYC Politician Wants To Ban Cashless Restaurants (eater.com) 636

If New York City Council Member Ritchie J. Torres has his way, the growing trend of cashless restaurants -- establishments that accept payment only in plastic and digital forms -- will be snuffed out. From a report: Torres plans to introduce legislation before his fellow city council members that, if passed, would levy fines on any local businesses that refused to accept paper currency. "I started coming across coffee shops and cafes that were exclusively cashless and I thought: But what if I was a low-income New Yorker who has no access to a card?" he says in a Q&A with Grub Street. "I thought about it more and realized that even if a policy seems neutral in theory, it can be racially exclusionary in practice. Therein lies the problem with card-only policies. I see it as a way to gentrify the marketplace."

Torres believes the cashless business model is inherently classist and racist, as it excludes anyone who might not be able to afford smartphones loaded with digital currency such as Apple Pay or qualify for credit cards, let alone the roughly 22 million Americans who do not have bank accounts. "If you're intent on a cashless business model, it will have the effect of excluding lower-income communities of color from what should be an open and free market," he tells Grub Street. In 2009 Wall Street Journal story, Tony Zazula, co-owner of now-shuttered Commerce in New York City, explained, pretty much, yes, that's right.

This discussion has been archived. No new comments can be posted.

NYC Politician Wants To Ban Cashless Restaurants

Comments Filter:
  • Pre-paid cards? (Score:3, Interesting)

    by Anonymous Coward on Friday November 30, 2018 @11:15AM (#57726156)

    Umm, you can stroll down to your local Walmart, Dollar Store, Gas Station and trade your cash for a pre-paid "credit-card" anytime. You can reload that card too. So even if you don't have good enough credit to get a credit card you could go this route.

    Lets not even address the elephant in the room, of in modern society you just need a credit card and internet for that matter to function, so if you do not have these items you need to come up with a work around. Like above.

    • Which means you have to have all the money up front. If you can do that for $100+ then you can probably qualify for a reguar bank account.
      • Not always. I know several people who no longer qualify for bank accounts.

        Mainly because they bounced a couple of checks and the bank closed the account due to them not paying the bank back yet.

        Digging yourself out of that hole, is a multi year process and can only be done through the orginial bank.

        Yes they can't buy stuff online either. Or get loans for cars etc.

        However if you are that bad with money you aren't going to be walking NYC going to coffee shops either. You will be pan handling for cash.

    • Re:Pre-paid cards? (Score:5, Insightful)

      by tepples ( 727027 ) <.tepples. .at. .gmail.com.> on Friday November 30, 2018 @11:35AM (#57726320) Homepage Journal

      Umm, you can stroll down to your local Walmart, Dollar Store, Gas Station and trade your cash for a pre-paid "credit-card" anytime. You can reload that card too.

      What is the typical fee to obtain the sort of card you describe, to keep the card active for each month, and to add money? If there is a flat fee to add any amount of money, for example, then someone who has access to only small amounts of cash at a time will have to pay the fee more often, and therefore pay a larger percentage of what is added as fees.

    • Re:Pre-paid cards? (Score:5, Insightful)

      by smooth wombat ( 796938 ) on Friday November 30, 2018 @11:39AM (#57726354) Journal
      and trade your cash for a pre-paid "credit-card" anytime.

      Or, and I'm just spitballing here, one could simply use the cash they have in hand rather than jump through hoops.

      I realized the KISS principle isn't valued any more, but oddly enough, simple is usually better.
      • Re:Pre-paid cards? (Score:4, Interesting)

        by ShanghaiBill ( 739463 ) on Friday November 30, 2018 @12:11PM (#57726662)

        Or, and I'm just spitballing here, one could simply use the cash they have in hand rather than jump through hoops.

        That doesn't eliminate the costs. The proposed rule just uses coercive government to force the cost onto someone else. Handling cash is slower and more labor intensive, can be pocketed by dishonest employees, and makes the vendor a target for robbery. So the owner can either eat the loss, or push the cost onto the customer via higher prices.

        I realized the KISS principle isn't valued any more, but oddly enough, simple is usually better.

        More laws micromanaging how businesses operate is not an example of KISS.

    • One of my young co-workers got a Discover secured card to establish a credit rating, and they upgraded him to a real card and gave him his deposit back after a few months. No credit rating doesn't mean you can't get a decent credit card.

    • by sjbe ( 173966 )

      Umm, you can stroll down to your local Walmart, Dollar Store, Gas Station and trade your cash for a pre-paid "credit-card" anytime.

      Of course but you think there are a lot of Walmarts and gas stations in Manhattan [ny1.com]? I'm sure there are alternatives where you can get a pre-paid debit card but it sure as hell is a lot less convenient than carrying the cash that is already in your wallet. Furthermore there is a cost to doing that. Time, fuel, financing charges (the cards aren't free), etc.

      Lets not even address the elephant in the room, of in modern society you just need a credit card and internet for that matter to function

      That's not even remotely true. I have had dozens of people work for me who do not have credit cards and a few of them have pretty much zero interest in

  • by Viol8 ( 599362 ) on Friday November 30, 2018 @11:16AM (#57726162) Homepage

    SImply as a last resort - if you're lost your wallet or phone you can always borrow some cash whereas not many people will let you borrow their cards!

    Plus sometimes its nice to be able to pay anonymously and not always be tracked by some financial organisation by using their services.

    Once cash is gone then the banks + Apple really will be the ones in charge or your life. There'll be no anonymity and if the bank suspends your account then you won't even be able to buy a coffee never mind pay your rent. All the millenials rushing to ditch cash and thinking its yesterdays payment system might want to think about that for a moment especially given how hot they are on privacy and anonymity elsewhere.

  • by UnknownSoldier ( 67820 ) on Friday November 30, 2018 @11:18AM (#57726174)

    Anyone know how operating a cashless business is legal by refusing Legal Tender?

    Isn't the entire point to have a common / ubiquitous currency that is available to ALL citizens?

    • Anyone know how operating a cashless business is legal by refusing Legal Tender?

      It would only be a problem if they let the customer incur the obligation and then refuse the legal tender.

      If the merchant makes incurring the obligation contingent on the form of payment, then I suspect the merchant is legally in the clear. It is no different than a sign on the cash register that reads, "no bills over $20."

      I wonder how they will write the law. For example, if it is not written in a clear and precise way, I could have a coffee shop with a sign on the door: "cash transactions

      • If the merchant makes incurring the obligation contingent on the form of payment, then I suspect the merchant is legally in the clear.

        I don’t see how that holds up as any sort of principle. It’s not as if I can discriminate based on some arbitrary trait, and as long as I make it clear to potential customers that I’m in the clear.

    • That only refers to the US Government. All private buisness are allowed to set their own rules, with most being limited by state law.
      Otherwise all those stores that say a $20 is the highest bill they would accept would be illegal or how some places will not accept money that is too bad of shape.
      • [Legal tender] only refers to the US Government.

        The notice on a Federal Reserve Note explicitly includes private debt: "This note is legal tender for all debts, public and private." Cashless businesses avoid the legal tender rules not by asserting that they are "private" but by structuring their transactions to avoid creating a "debt" in the first place. They do this by requiring payment in full up front before handing over ownership of goods or performing a service.

      • by sconeu ( 64226 )

        "This note is legal tender for all debts, public and private." (emphasis mine).

    • by Arkham ( 10779 ) on Friday November 30, 2018 @11:50AM (#57726484)

      Anyone know how operating a cashless business is legal by refusing Legal Tender?

      Isn't the entire point to have a common / ubiquitous currency that is available to ALL citizens?

      Can I use cash to buy from Amazon?

  • Public or private (Score:4, Informative)

    by Geoffrey.landis ( 926948 ) on Friday November 30, 2018 @11:18AM (#57726178) Homepage

    when I look at a dollar bill, it says "this note is legal tender for all debts, public or private".

    So I'd think that if you offer to pay your coffee-shop bill with dollar bills, that's legal tender for the debt you owe then for the service. "A creditor is obligated to accept legal tender toward repayment of a debt." [investopedia.com]

    • by vakuona ( 788200 )

      If they haven't sold the coffee to you, then there is no debt, and therefore they don't have to accept your legal tender.

      That being said, I think most places should still allow payment by cash, even if I increasingly opt not to use cash.

      • If they haven't sold the coffee to you, then there is no debt, and therefore they don't have to accept your legal tender.

        Most restaurants I go to, you get your meal first, and then you pay.

        I guess you're right about coffee shops, though-- it's counter service, usually, where you pay then get your coffee.

      • by Pascoea ( 968200 )

        Not a lawyer, but I believe the act of ordering is entering into a verbal contract. "I would like a coffee." followed by "Ok, that will be $5.99" is the extent of what would be required to enter into the contract. Same reason it's not legal to go into a restaurant, order a bunch of food, then just leave after the waitstaff enters the order.

        It would be interesting to get an actual lawyer's interpretation of how this applies. [hg.org] The whole "both parties must agree to the terms" stuff in there that seems to blo

    • That is not the case for private businesses, it depends on state law.

      https://www.federalreserve.gov... [federalreserve.gov]
  • by DERoss ( 1919496 ) on Friday November 30, 2018 @11:23AM (#57726216)

    I live in an urban area served by Southern California Edison (SoCalEd). Without fire, earthquake, or severe weather, SoCalEd fails more than once each year. When there is an interruption in electricity -- whether it is for 5 seconds or 5 hours -- my Internet service through Spectrum dies, sometime for over an hour after a 5 minute interruption of electricity.

    Many Internet-connected devices require electricity. New York City also experiences occasional interruptions of electrical service. How does a cashless restaurant get paid when that happens?

  • more at stake (Score:5, Insightful)

    by AndyKron ( 937105 ) on Friday November 30, 2018 @11:28AM (#57726260)
    There's a lot more at stake with a cashless society. Every purchase you make will be stored and analyzed. Do we want that? I thought financial privacy was important to Americans.
    • It's not -- many Americans tend to be most about "law and order", and they think that "if you have nothing to hide, why should you care?" Privacy rights tend to be more important in places that suffered under evil regimes in recent memory. i.e. the former Soviet satellite states.
  • The problem that restaurants have with cash is that the IRS can confiscate their cash [washingtonpost.com] for making daily deposits under $10,000 that appear to deliberately avoid reporting requirements for depositing $10,000 or more. If the restaurant keeps cash on site to comply with the IRS reporting requirements, robbery becomes a greater risk. Going cashless fixes both problems.
    • Re: (Score:2, Interesting)

      by b0s0z0ku ( 752509 )
      Then it's time to change that law. Or hopefully, the US will become increasingly polarized and finally collapse and break up. Then NYC can be a free city that doesn't have to worry about the diktats of the dirt in DC.
    • Having just been to NYC and experienced this first hand over the holidays, my belief is a bigger reason for businesses going cashless is to avoid problems like register skimming (i.e. employees pocketing cash from the till). Businesses lose anywhere from 3-6 billion dollars a year in the U.S. from their own employees, and for some of these smaller establishments that might not trust all of their workers and in general are just looking for efficient methods for minimizing this type of theft, removing the tem
  • How about Tourists ? (Score:2, Informative)

    by Anonymous Coward

    Last trip to NY from Canada, I bought only cash with me because of the cut that my credit card get with each transactions in foreign currency.

    If most of the restaurants where cashless, I don't know what I would have eaten.

  • So instead of banning cashless restaurants, how about the city help the people to get cashless up and running? Instead of tearing down, let's build. Get them an ID and registered to vote at the same time. The effects will show at the next election, you can count on it.
    • Unless the cashless method of payment can be anonymous, then no go. Part of the attraction is anonymity and inability to track one's spending habits. But something like a subway (Metrocard) card that also has an EMV chip and is reloadable with good, old-fashioned, cold, hard cash would also work nicely.
  • Why take away options to pay for your services?
    Generally, places will ADD payment options... Not alienate their other customer-base that's been used to the other methods for so long.

  • Ban an establishment from refusing cash, unless there is a business or vending machine within 500ft of
    the entrance advertising a service where legal tender can be used to purchase prepaid cards or tokens
    which will be accepted by the establishment and at least 20% of nearby businesses, AND when the customer is billed,
    the customer's bill at the establishment will be discounted by the sum total of all "load fees" or other charges that could be incurred
    from the time of obtaining the card or token until after

  • So could people enumerate just what is left in this world that is NOT racist? I am simply amazed that I find the time to be a racist and still get all my work done...whew.

  • A politician grossly out of touch with what technology is actually available? Well I never
  • A customer came in who bought one of those pre-paid credit cards. He wanted to put more money on it. Thing is, we have no way of doing it. He said he doesn't have online access. And he needed money on the card because the hotel he went to required a card. Even though he had cash to pay a deposit. The only thing we could do is sell him another one which cost him a $4.95 surcharge.

    Imagine if you were homeless and had to pay $5 every time you needed to get a new card. In my area that's enough to get a container of instant coffee/tea, a loaf of bread, and two cans of vegetables.

  • by Rick Schumann ( 4662797 ) on Friday November 30, 2018 @12:42PM (#57726942) Journal
    Huzzah for common sense. I hope he goes far in politics.
  • Long term thinking (Score:5, Insightful)

    by nehumanuscrede ( 624750 ) on Friday November 30, 2018 @12:51PM (#57727018)

    Besides the usual no power, no network and everything else required for electronic transactions to happen issues. . .

    If everyone went cashless tomorrow, what happens when Visa, MC, Apple Pay, etc decide they want more of a cut than they already get by raising the percentage fees per transaction ?

    Do we really want so few unregulated companies with that much control over, what will be, the end cost for a consumer ?

    Imagine if it were PayPal only and what kind of nightmare that would turn into.

Understanding is always the understanding of a smaller problem in relation to a bigger problem. -- P.D. Ouspensky

Working...