The way Americans pay for everyday purchases is changing as more businesses move toward digital transactions. In Maryland, a new law is set to reshape payment rules for certain retailers while protecting consumers who still rely on cash.
New Law Requires Some Retailers To Accept Cash Payments
Starting October 1, millions of Maryland residents will be affected by new protections covering cash payments for certain goods and services. House Bill 191, officially titled the Consumer Protection – Retail Transactions for Essential Consumer Goods – Cash Payments, was approved by Governor Wes Moore on May 26, 2026.
The law prevents certain merchants from refusing cash payments, forcing customers to use cards only, or charging higher prices to people paying with cash when buying specific everyday goods.
The rules apply to in-person purchases under $300 made between 6 a.m. and 10 p.m. Products covered by the law include food, water, personal hygiene products, health products and fuel.
Supporters of the legislation say it protects people who do not have traditional banking services or who prefer using physical currency for daily purchases.
Businesses Could Face Fines For Breaking The Rules
Retailers that fail to follow the new requirements could face penalties under the Maryland Consumer Protection Act. The Maryland Attorney General’s Office will first give businesses two chances to correct violations before financial penalties are applied.
A first violation could lead to a fine of up to $500, while repeated violations could result in penalties of up to $1,000. The enforcement process is designed to give companies time to adapt to the new requirements.
Some Companies Will Not Be Covered By The Law
The new rules do not apply to every business. Restaurants and businesses mainly focused on serving food or drinks for customers eating on-site are excluded from the requirements. Fuel retailers that require paid memberships also do not have to accept cash for fuel purchases.
Businesses can refuse bills larger than $20. They can also continue operating without accepting direct cash payments if they provide a machine that converts cash into a prepaid card without fees or deposits.
Online purchases, mail orders, phone orders, vending machines and certain kiosks are also outside the scope of the law.
Cash Remains Part Of The US Payment System
The change comes as cash use continues to decline across the United States. A Federal Reserve report found that cash represented around 14% of transactions in 2024. Despite this decline, more than 90% of consumers said they expect to continue using cash either for payments or as a way to store value.
Maryland’s new law reflects the ongoing discussion around payment choices, as governments and businesses balance the growth of digital payments with continued demand for physical currency.
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