NYC cash acceptance law for restaurants: the cashless ban and apps

A restaurant in New York City that runs a tap-only counter or requires guests to order on their phones may be breaking a law it has never heard of. The city's cashless ban requires food stores and retail establishments to accept cash for in-person sales, and in May 2026 the Department of Consumer and Worker Protection issued guidance that closes a loophole many app-only counters relied on. This guide, checked in November 2026, reads that guidance and the NYC311 page on cash refusal. It is general information, not legal advice. The Administrative Code text itself could not be opened for this guide, so read section 20-840.

What does the cashless ban require?

The department describes the ban as a consumer protection law that prohibits food stores and retail establishments from refusing to accept payment in cash for in-person transactions. It is in section 20-840 of the Administrative Code. The ban also bars businesses from charging higher prices to customers who choose to pay in cash. NYC311 says it covers businesses that sell food, including restaurants and mobile food vendors, and that cash means U.S. paper currency and coins.

What changed in May 2026?

The department issued guidance on May 22, 2026, about the exception for telephone, mail and internet-based transactions. Under that exception, stores may refuse cash for any telephone, mail or internet-based transaction, unless the payment takes place on the premises. The department said that earlier interpretations treating some app-based models as exempt no longer reflect the intended scope of the ban. Where a business offers goods at a physical location and facilitates or requires payment through a phone app as part of the in-person transaction, the transaction is not off premises.

What does that mean for a counter that uses a phone app?

The guidance gives an example that fits a coffee shop or a lunch counter: a shop that requires customers who come in to complete purchases only through a mobile application, and that does not accept cash, violates the ban. It adds that the use of app-based ordering or payment systems does not relieve a business of its obligation to accept cash where payment may occur on the premises. So a QR code on the table that is the only way to order and pay is a risk. Offer a cash route as well, such as a counter register or a server who takes cash and enters the order.

What about online and phone orders for pickup?

The exception still covers transactions that are truly remote: a guest who pays online or by phone before arriving. The department's wording turns on whether payment takes place on the premises. Ask the department about a pickup order where the guest pays at the window, because that payment does take place on the premises.

Is there a way to avoid taking cash?

NYC311 says a business may refuse cash if it has a machine that converts cash into a prepaid card. The page read does not give the conditions for such a machine, so ask the department before you buy one. Do not install a machine on the assumption that any device qualifies.

May you charge cash customers more?

No. The ban bars charging more to customers who pay in cash. That affects two-tier pricing. If you show a cash price and a card price, the cash price must not be the higher one. Our guide on New York credit card surcharges explains how a card price is posted.

Can you round totals?

NYC311 says that since the U.S. Mint stopped producing pennies, businesses may choose, but are not required, to round totals to the nearest nickel. This does not exempt a business from other laws. If you round, decide on a rule, apply it to every cash payment and tell staff.

What are the penalties?

The department's guidance says violations of subsection (b) of section 20-840 carry a penalty of up to $1,000 for the first violation and $1,500 for each subsequent violation. Consumers can file complaints with 311. A restaurant that gets a notice should respond promptly and fix the payment route in question. Keep a copy of the notice, note who handled it and write down what you changed, so that a second notice, which carries the higher penalty, can be answered with a record. Brief every shift lead on the rule, since a single refused customer at a busy register is how most complaints begin.

What should you do next?

Walk through your restaurant as a guest with only cash. Can you order and pay at every counter, window and table? Is there a sign that says cash is welcome? Make sure the register has change. Then read how New York treats card surcharges, since both rules meet at the same register.

More guides for your business:

• New York credit card surcharge rules for restaurants: post the total
• How to take direct online orders in New York City without delivery apps
• New York automatic renewal law for restaurant memberships

More in the US guides for food businesses.