Restaurants and business may be forced to accept cash under proposed law

Shops and cafes could be forced by law to accept cash payments with banks also expected to have to allow customers access to cash, under new Government proposals.

It is understood that banks will have to offer customers reasonable access to cash under a draft bill to be put forward by the Department of Finance in 2023.

The proposals could include having a minimum number of cashpoints per town or region. The new bill is also expected to bring independent ATM operators under Central Bank supervision.

A submission from the Central Bank on access to cash and a review of the future of retail banking says: "Notwithstanding the increase in use of digital payments over recent years, cash is essential to contingency in the event of electronic payment system failures and remains an important means and choice of payment and store of value for many sectors in society.

"The value of ATM withdrawals in Ireland are now at about two-thirds of their pre-pandemic average levels but remain stable at a new lower level of c. €1bn per month. Consequently, a sustained demand for cash in payments can be expected in the years ahead and cash remains an important payment instrument for consumers across the euro area including in Ireland," the Central Bank submission said. 

Finance Minister Paschal Donohoe said: “The Government might decide it is appropriate that, inside particular areas – that citizens or communities above a certain level – should have access, in a point, to the ability to deposit cash and the ability to withdraw cash.

“People like, or indeed, need to use cash, and uncontrolled changes resulting from individual commercial decisions are leaving them behind,” Minister Donohoe said.

“We will have to consider whether that is appropriate here in Ireland for that to happen, given our population densities, and given the fact that we now have a more concentrated banking sector than we had a year ago.”

Minister Donohoe said it would raise some concerns as to why businesses were not conducting cashless transactions. However, he added that he was aware that some businesses could not accept card transactions on occasion, for various reasons. 

Moves by AIB during the summer for 70 branches to go cashless provoked a major backlash with the move eventually shelved. 

At the time, the bank said it took the decision not to go cashless in light of what it described as customer and public unease at the move to stop accepting cash at so many branches.