Officials looking to ban cashless businesses in Los Angeles

Three Los Angeles City Council members will be joined by other officials at a press conference Tuesday to propose a ban on cashless businesses in the city.

Many businesses transitioned to cashless payment methods during the COVID-19 pandemic as a way to reduce contact between employees and customers; others have gone cashless due to crime concerns.

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The motion, first introduced by Councilwoman Heather Hutt (District 10) in August 2023, looks to ensure an inclusive and equitable economy for all Angelenos, a press release stated.

Also present at Tuesday’s meeting will be Councilmembers Eunisses Hernandez (District 1) and Hugo Soto-Martinez (District 13) as well as Community Coalition President Alberto Retana and Leslie Belt, a representative from the Jenesse Center, a domestic violence intervention program.

According to Hutt’s release, the motion looks to help Angelenos who may not be able to obtain bank accounts or have been denied access to credit, thus forcing them to pay for goods and services in cash.

“Not accepting cash payments in the marketplace systematically excludes low-income communities of color, young people who do not meet the age qualifications for credit or debit cards and seniors who have not transitioned to card or digital payment modes,” Hutt’s release said.

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At Tuesday’s press conference, Hernandez vocalized her support for the ordinance, emphasizing the impact it could have on “unbanked” individuals.

“Not only [do cashless businesses] leave out people who are unbanked — a population that is disproportionately people of color — immigrants and elders, it also includes people who cannot use a credit card or debit card for a number of reasons,” she said. “That includes victims of sexual assault, people fleeing intimate partner violence and others whose personal safety could be at risk when their purchases and locations are traceable through the digital banking system.”

In addition to being seconded by Hernandez and Soto-Martinez, Hutt’s motion was also seconded by Councilwoman Katy Yaroslavsky (District 5).

The motion must go through the Trade, Travel and Tourism Committee before moving to the City Council for a final vote this summer.

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