The city of Philadelphia, in the United States, has passed a law that from this summer will prohibit stores from accepting only credit card and electronic payments, thus making it mandatory to accept cash as an option. It is not the first US city to adopt this solution, but it is the largest to have done so in recent times and the decision is part of the broad debate on the evolution of commercial businesses, with many companies experimenting with systems to make faster and simple payments, to the detriment of traditional transactions with banknotes and coins.
The largest and most important company that is working on cashless shops is Amazon with its “Go” service. In some cities in the United States, the company has opened experimental supermarkets where all you need is an Amazon account, linked to your credit card, to pay for the shopping.
Customers simply need to identify themselves with a '' application on their smartphone when they enter the supermarket, then they can do their shopping normally and exit directly from the store when they are finished: the system automatically keeps track of their purchases and, when they leave the supermarket, charges their credit card for the shopping just made . As there is no checkout, Amazon Go can only be used with electronic payment systems and there is no option to pay in cash.
Amazon is probably the company that pushed the border further about what you can do without physically accepting money, but in the United States there are several other companies and shops that have started to accept only credit and debit card payments. Local administrations are not pleased with this, especially for the fear that some shops may be closed to those who do not have a credit card or current account.
Although the most significant, Philadelphia is only there. latest case of this trend to introduce laws for cash payments. A law recently passed in New Jersey that only bans electronic payments in stores, but it is unclear whether the state governor will sign it into effect. In Massachusetts, however, there is a law that already requires retailers to accept payments in cash. In New York they are considering introducing new rules to do the same.
Companies and stores that have abandoned cash say they have improved the efficiency and costs of running their businesses. Payments by credit card are faster and reduce queues at the checkout, also reducing the risk for cashiers and the need to store cash in stores until they close. It also eliminates the need to periodically go to the bank to deposit the cash received from customers, with the dangers that it entails.
The detractors of shops without cash payments think differently. They say customers should always be allowed to pay with bills and coins, as many people don't have a checking account, or don't have a credit card to avoid having to pay annual fees and transaction fees. Others argue that cash payments protect customers' privacy because their purchases are not as traceable as those made electronically.
Despite bans in some states and cities, businesses that only accept credit cards credit and other types of electronic payment are continuing to increase. The Wall Street Journal gives the example of the Mercedes-Benz Stadium in Atlanta, where cash will no longer be accepted from next Sunday. The stadium managers say that this will reduce the queues at the tills and that there may be lower prices at the stands that sell food. Those who do not have a credit card can go to the stadium with cash and have it loaded onto a prepaid card, which can then be used for purchases.
The law approved in Philadelphia was proposed by William Greenlee, a Democrat city councilor. He explained to the WSJ that: “Most people who do not have a credit card have a low income, or belong to a minority or are a migrant. It seemed to me that it was a form of discrimination, albeit unintentional. they will have to do what businesses have done since Benjamin Franklin walked the streets of Philadelphia. ” The law was signed by Democratic Mayor Jim Kenney, who noted that about a quarter of Philadelphia's population lives below the poverty line. excluding the risk of making some activities impossible or making their management too complicated. For example, hotels will be able to continue to require a credit card for the temporary withdrawal of money with which they protect themselves when they give a room, just as shops that offer forms of affiliation will be exempted. Amazon says, however, that the law could equally put its Go service at risk, because it can also be used without a subscription to Prime (the service for receiving packages without additional shipping costs, against the payment of an annual fee for
It is expected that in the coming months initiatives such as those in Philadelphia will be followed by several other cities in the United States. Laws of this type are opposed by the National Federation of Retailers of the United States, which believes it is in the right of each company to decide which type of payment to accept.
In Italy, payments in stores by credit card and ATMs are starting to be more popular, with 85 percent growth in the number of transactions between 2008 and 2016. The introduction of contactless systems, those for paying by card with chip or smartphone (without having to enter a PIN within certain amounts), is helping to increase the volume of alternative payments to cash, which still remains the most widespread way of paying. in stores. The recent laws introduced to make the payment terminal (POS) mandatory in commercial establishments have done something, even if in their legislative and judicial evolution they have lost much of their value. Currently the law provides for the obligation of the POS, but without penalties for those who do not respect it.
