KING COUNTY, Wash. — Businesses in unincorporated King County will be required to accept cash for certain transactions, after the King County Council passed an ordinance Tuesday.
The ordinance, which passed 5-4, also mandates that businesses cannot charge higher prices for customers who choose to use cash.
There are exceptions, such as transactions that are not in person or businesses that offer machines to transfer cash into a prepaid debit card. Retailers also will not be required to accept bills over $20 or more than $200 in a single transaction.
The Executive branch is required to study implementation and enforcement of the legislation and present it to the county council by Dec. 1, 2024. The law will go into effect on Jan. 1, 2025.
“This legislation has been an important and sometimes challenging balancing act – trying to protect consumer access, support local businesses, and adapt to a changing world all at the same time,” Councilmember Jeanne Kohl-Welles, who sponsored the legislation, said. “I am very pleased that the legislation as passed addresses this emerging equity issue in a way that is creative, proactive, and collaborative. Further, it signals that as technology continues to rapidly change as we appear to be moving to a cashless society, there is a place for everybody in our local economy.”
The county council cites data in the legislation that indicates 3% of Washington residents are unbanked, meaning they do not have access to traditional financial services like bank accounts or credit cards. More than 17% are underbanked, meaning they may have a bank account but often rely on alternative financial services.
Retailers will be able to apply for an exemption with the Hearing Examiner to not require cash if the business faces unique hardships. These can include but were not limited to theft history, proximity to a banking institution, businesses that operate out of a home and those with only one employee onsite at a time.