Objective: To enact a law requiring all businesses and public services in New Zealand to accept cash payments, ensuring consumer choice, financial privacy, and resilience against digital payment outages.

Background: As digital payments become more prevalent, many businesses and public services are moving towards cashless transactions. This trend risks excluding individuals who rely on cash for privacy, budgeting, or lack of access to digital payment methods. Cash is legal tender, yet only debtors are currently required to accept it.

Call to Action: We urge the New Zealand government to pass legislation that requires all businesses and public services to provide the option to pay with cash. This will protect consumer rights, ensure inclusivity, and provide a critical fallback during digital payment outages.

Supporting Legislation:

• Consumer Guarantees Act (CGA): Ensures goods and services are fit for purpose and of acceptable quality. Legalizing cash payments aligns with the CGA's intent to protect consumer rights by ensuring all consumers can access goods and services.
• Fair Trading Act (FTA): Promotes fair, honest, and transparent trading. Requiring cash acceptance would prevent unfair exclusion of consumers who prefer or need to use cash.

Addressing Concerns:

• Security Concerns: If businesses cite theft as a reason to refuse cash, they should be required to prove they have been targeted for theft, rather than using it as a blanket excuse.
• Operational Efficiency: While digital payments are convenient, businesses should not prioritise ease of use over consumer rights. In corporate terms, this is about balancing operational efficiency with corporate social responsibility.

Counterarguments:

• Cost Savings: While businesses argue that going cashless saves on cash handling costs, credit card transactions come with fees typically ranging from 1.5-2.5% per transaction. These fees can be significant, especially for low-margin businesses, and often exceed the costs associated with handling cash. Moreover, cash transactions do not involve processing fees, making them cheaper on a per-transaction basis.
• Consumer Trends: Although digital payments are convenient for many, a significant portion of New Zealanders still rely on cash. According to Reserve Bank statistics, nearly 43% of New Zealanders use cash for everyday items. Excluding cash can lead to customer exclusion, particularly for unbanked or underbanked individuals who lack access to digital payment methods. Cash also provides privacy and security benefits that digital payments cannot match, protecting consumers from data breaches and identity theft. 

Exceptions to Consider for Legalising Cash Payments for all New Zealand businesses and public services in New Zealand to accept cash payments:

• 1. Security Concerns: Businesses that have experienced multiple theft incidents may apply for an exemption to operate cashless for their safety. This exception would require documented evidence of theft occurrences and a review process to ensure the exemption is justified.
• 2. Large Bills for Small Purchases: Businesses may refuse large denomination bills (e.g., $50 or $100 notes) for small purchases (e.g., under $20) to prevent cash handling difficulties and ensure smoother transactions.
• 3. Coin Payments for Large Transactions: Businesses can limit the use of coins for transactions over a certain amount (e.g., $20) to maintain operational efficiency and avoid unnecessary delays at checkout.
• 4. Remote or Unstaffed Locations: In locations where staffing is minimal or security is a significant concern, such as remote kiosks or automated service points, businesses may be allowed to operate cashless. 
• 5. Temporary Exemptions for Digital Outages: In the event of significant digital payment outages, businesses may temporarily refuse cash payments if it poses a security risk or operational challenge, provided they resume cash acceptance as soon as feasible.
• 6. Specialised Services: Certain specialised services that require prepayment or operate on a subscription model may be exempt from cash acceptance if it is impractical to handle cash within their business model.
• 7. Time Limit for Cash Acceptance: Similar to Danish regulations, businesses could be required to accept cash payments between 6 a.m. and 10 p.m., providing flexibility while ensuring access to cash transactions during regular hours.

Why It Matters:

• Consumer Choice: Ensuring that cash remains a viable payment option supports the fundamental right of consumers to choose how they wish to pay. This choice is crucial for maintaining a diverse and flexible economy that caters to the needs of all individuals, including those who may not have access to digital payment methods.
• Privacy Protection: Cash transactions offer a level of privacy that digital payments cannot match. In an era where data breaches and identity theft are increasingly common, the ability to make purchases without leaving a digital footprint is an important safeguard for personal privacy and security.
• Inclusivity: Cash acceptance ensures that all individuals, including the unbanked or underbanked, can participate fully in the economy. This inclusivity is essential for supporting vulnerable populations who may not have access to banking services or who prefer cash for budgeting and financial management.
• Resilience Against Digital Disruptions: Recent events, such as global IT outages, have highlighted the vulnerabilities of relying solely on digital payment systems. Keeping cash as an option provides a critical fallback during such disruptions, ensuring that economic activities can continue uninterrupted.
• Economic Stability: By maintaining cash as a legal and accepted form of payment, we help ensure the stability and reliability of the financial system. This stability is vital for consumer confidence and the smooth functioning of commerce.
• Support for Small Businesses: Many small businesses operate on thin margins and may find digital transaction fees burdensome. By accepting cash, these businesses can avoid additional costs and maintain profitability, contributing to a healthier local economy.

Thank you all for signing and please keep an eye out for updates!

- Keep Cash Alive New Zealand Advocacy Group