Illinois Gov. JB Pritzker signed the Retail Cash Payment Act, House Bill 4592, on July 31, 2026. The Illinois House passed the bill unanimously on April 9, 2026, and the state Senate followed on May 19. The law takes effect January 1, 2028.
The law bars retailers that employ someone to process in-person transactions from refusing cash for purchases under $500, and from posting signs saying cash is not accepted. Retailers do not have to accept bills larger than $20.
- Self-checkout: exempt, as long as the store keeps at least one staffed register.
- Late-night sales: exempt after 10 p.m.
- Running out of change: a store that runs out of cash is not in violation.
- Membership-only stores: outside the law’s scope.
- Remote sales: phone and online purchases are not covered.
- Cash-to-prepaid cards: offering a way to convert cash onto a prepaid card counts as compliance.
According to Payments Dive, fines start at $50 for a first violation, rise to $100 for a second within 12 months, and reach $500 per violation after that, up to $5,000 per calendar year. That is small change for a national chain, but the exposure recurs: every refusal on record is a separate violation, up to the annual cap.
Cash is still US consumers’ third most-used payment method
Federal Reserve data show why the issue has not gone away. The Fed’s Diary of Consumer Payment Choice, its annual survey of how US consumers pay, found that consumers made an average of 47 payments a month in 2026: 16 by credit card, 15 by debit card, and six in cash. Cash held the third spot for the sixth year in a row.
The survey found three groups that rely on cash more than average: households earning less than $25,000 a year, adults 55 and older, and rural residents. That was the case made by the bill’s sponsor, state Sen. Christopher Belt: “For many Illinois residents, cash remains a dependable and necessary way to pay for everyday purchases.”
Cashless stores will have to rebuild cash handling
A store that stopped handling cash will have to start again, and that has a cost. Going card-only was usually justified by measurable savings, and the law wipes them out.
- Rebuild a cash float and a supply of change.
- Bring back an armored car or bank deposit contract, with the per-pickup cost that comes with it.
- Reintroduce daily till reconciliation and cash over/short into store procedures.
- Manage theft risk again, along with the insurance requirements that come with it.
That operational reality explains the long runway to January 1, 2028: it gives retailers time to pay down the cost of refitting checkouts and to renegotiate their cash collection contracts.
States and cities, not Washington, are setting the rules
No federal law requires US merchants to accept cash. Legal tender status means a bill validly settles a debt. It does not oblige a seller to make a sale on those terms. Regulation is therefore being built state by state and city by city.
| Jurisdiction | Effective | Scope |
|---|---|---|
| New York City | 2020 | City law requiring businesses to accept cash |
| New York State | March 2026 | State law extending the requirement statewide |
| Illinois | January 1, 2028 | Purchases under $500, bills up to $20 |
Europe starts from a different legal basis. Euro banknotes and coins are legal tender under EU law, and in June 2023 the European Commission proposed a regulation to clarify what that status means and to limit refusals to accept cash. The logic is the same as in Illinois, applied to a currency area rather than to a single state.
Cash’s decline in usage data has not weakened the obligation to accept it. The 2026 legislative trend runs the other way.