Shoppers greet Philadelphia's ban on cashless stores amid headaches for businesses

Philadelphia’s ban on cashless stores officially is in effect, forcing establishments citywide to accept cash as payment from customers.

In Philadelphia, the backlash to the rise of cashless stores started due to concerns that the ban on cash was discriminatory. Opponents argued that denying cash disproportionately affected low-income populations without access to credit cards and bank accounts.

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Supporters in Philadelphia - where the ban went into effect Tuesday - say they agree with the ban and greeted the move. Owners of previously cashless stores say they understand the logic, but acknowledged changing to accepting cash will cause inconvenience to their operations. 

At Franklin’s Table, a high-end food court in West Philadelphia, Ambria Jimenez is the manager of High Street Provisions — a previously cashless store which offers breakfast sandwiches and baked goods. 

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Jimenez said the store is making the transition to accept cash. Although Jimenez said the cashless model was better for her business, she understands both sides of the argument.

“I see how it can be discriminatory for people that don't necessarily have the funds or have the means to have a bank account,” Jimenez said. “I also see from our perspective, as owners or restaurants, that it’s a lot easier to be cashless — we don't have to handle cash, we don't have to worry about someone taking our cash.”

Now, High Street Provisions is training employees to deal with cash. It's also coordinating how to transfer and store the cash when the store is closed.

“It’s not a difficult process, it’s just two or three more steps we have to do during the day,” Jimenez said.

Sweetgreen, a salad restaurant chain, is a business at the heart of the debate. Sweetgreen went cashless in 2017, but after the ban was announced, its Philadelphia stores began to transition to accepting cash.

Sweetgreen cited quicker transaction times, a decrease in the risk of robbery and an improvement in hygiene as reasons for their move to ban cash. But now, the store is back to accepting money.

In line at a Philadelphia Sweetgreen, Michael Becker said the ban is a good step that will let people buy more.

“There are people who don't have enough money on hand or don't have access to a bank,” Becker said. “To prevent them from shopping at stores, like Sweetgreen, I think that’s kind of messed up. I think [the city council decision] is a step in the right direction.”

Although shoppers generally welcomed the ban, some said that many previously cashless establishments are aimed at a certain demographic who likely don't struggle with credit or bank account issues. 

“I think banning cashless stores is reasonable, considering that there is a fair amount of the population who only use cash,” Simone Liao said. “But for a lot of stores like Sweetgreen, the population that they are targeting always has a credit card.”

At Sweetgreen, one salad can cost almost $14. And at High Street Provisions, a grilled cheese sells for $9.

At Steve's Prince of Steaks, a Philly cheesesteak institution with five locations, cash has been king. Steve's has always accepted cash — two of their locations in the northeast of the city only accept cash.

Jason Magowan, the co-partner of Steve's Prince of Steaks, said he approves of the city's decision.

"Cash is the basis of our system here," Magowan said. He raised concerns that customers who don't have bank accounts, good credit, or enough money in their accounts would not be able to shop. 

"I think it ends up breeding class warfare in a way," Magowan said. "Going cashless is just a way to control people. I think it's totally wrong and it holds people down."