Pritzker Signs Cash-acceptance Retail Law

Gov. JB Pritzker signed Illinois House Bill 4592 on July 31, creating a new statewide requirement that many brick-and-mortar retailers accept cash for smaller purchases. The measure, now Public Act 104-0665, takes effect Jan. 1, 2028, according to the governor’s bill-action release and the Illinois General Assembly’s public act record. The law applies to retail mercantile establishments that employ a person to take in-person payments at a physical location. Under the act, those businesses cannot refuse cash for sales under $500 or post signs saying cash is not accepted, with several listed exceptions. The measure answers a debate that has spread beyond Illinois as more businesses shifted toward card-only or app-based payments. (gov-pritzker-newsroom.prezly.com) In Illinois, supporters of the bill said the change preserves access for customers who rely on cash, while businesses now have roughly 17 months to prepare before the requirement begins. (ilga.gov) ### Which Illinois businesses are covered by the new rule? Public Act 104-0665 defines a “retail mercantile establishment” as a fuel station, grocery store, pharmacy, or restaurant. The cash-acceptance rule applies when one of those businesses employs an individual to accept in-person payments at a physical location. The Illinois General Assembly’s bill status page shows the final version was narrower than the bill’s earlier synopsis, which had described broader retail coverage. (illinoistimes.com) The enacted law is limited to those named categories rather than all retailers generally. ### What exactly must those businesses do at the register? The law requires covered businesses to accept cash for in-person sales of less than $500. (ilga.gov) The General Assembly record also says the act does not require a business to accept bills larger than $20 as payment for goods or services. The statute also bars covered businesses from posting signs on the premises stating that cash payment is not accepted. (ilga.gov) Earlier versions referenced higher prices for cash customers, but the enacted public act centers on refusing cash and no-cash signage. ### Which sales are exempt from the cash requirement? The act lists several exceptions. Self-service checkout transactions are exempt, as are retail sales between 10 p.m. and 6 a.m., temporary situations in which a business cannot process cash because of a sales-system failure, and cases in which a store temporarily lacks enough cash on hand to make change. (ilga.gov) Membership-model retailers are also exempt. (ilga.gov) So are businesses that accept prepaid cards and provide a way for customers to convert cash to the prepaid card at the point of sale, self-service checkout, or a similar method inside the store. Phone and internet sales are excluded as well. ### How would violations be punished? The Illinois General Assembly’s bill status page says a violation is a petty offense and that the act provides for fines. (ilga.gov) The public act summary available through the legislature does not specify a separate dollar amount in the excerpts surfaced, meaning the petty-offense framework would govern unless another provision sets a different penalty. Under Illinois law, the default fine for a petty offense can be up to $1,000 unless otherwise specified. That is set out in the state’s criminal code provision on petty offenses. ### Why does the law not start until 2028? Jan. 1, 2028 is the effective date written into the legislation and repeated in the governor’s July 31 bill-action release. The delayed start gives covered businesses more than a year to adjust cash-handling procedures, staffing and point-of-sale practices before the mandate begins. (ilga.gov) Capitol News Illinois reported after the signing that retailers and advocates were assessing compliance costs and operational changes tied to handling cash. (ilga.gov) That review now moves into the implementation period before the 2028 start date. Jan. 1, 2028 is the next concrete milestone in the law’s rollout. (gov-pritzker-newsroom.prezly.com) By that date, covered Illinois fuel stations, grocery stores, pharmacies and restaurants with staffed in-person payment points will have to comply with the new Retail Cash Payment Act. (ilga.gov) (capitolnewsillinois.com)