Major retailers are increasingly moving towards digital payment methods, and some have even stopped accepting cash as payment for gift cards. This trend has raised concerns about the exclusion of those who rely on cash for transactions, as well as the privacy of consumer data during digital transactions.
According to a recent article by Yahoo News, gift card draining scams have become increasingly common during the holiday season. Scammers can gain access to physical copies of gift cards in stores and tamper with them, using a reader to scan an unpurchased card’s number and record it. When the card is actually purchased and activated, they redeem the loaded funds with the stolen number. Some scammers may also replace gift cards with decoy items, leaving the purchaser or recipient of the card with an empty balance.
According to a recent article by The Guardian, the Cashless Retailers Prohibition Act of 2018 would make it illegal for restaurants and retailers not to accept cash or charge a different price to customers depending on the type of payment they use1. However, this bill has yet to be passed.
In January 2023, AARP reported that some businesses have stopped accepting cash altogether, citing advancing technology and staffing trends as reasons for the shift2. The article also notes that for safety reasons, many retailers are requesting contactless forms of payment during a transaction, and those retailers who do accept cash payments have been asking customers to use exact change3.
It’s important to note that the Payment Choice Act was reintroduced in June 2023 by Rep. Donald M. Payne, Jr. The bill aims to address the growing trend of businesses favoring digital payment methods over cash, ensuring that Americans retain the freedom to use physical currency for transactions. This legislation would also prohibit retail businesses from charging a higher price for using cash than for other forms of payment4. The Payment Choice Act has passed in the House of Representatives and is moving through the Senate4.
In conclusion, while some retailers have stopped accepting cash as payment for gift cards, there are efforts underway to protect the continued use of cash as a viable and inclusive payment option. The Payment Choice Act is one such effort, which aims to preserve American currency as a legitimate means of paying for goods and services4.
Learn more: 1: theguardian.com 2: aarp.org 3: cla.auburn.edu 4: loomis.us