CHICAGO, Feb. 19, 2021 /PRNewswire/ — A Chicago financial service executive is warning members of Congress about a COVID-related practice of prohibiting cash payment for goods and services implemented by some businesses and companies. The practice is fraught with potentially devastating results to an already vulnerable population.
In a letter to Congressional members, J.R. Davis, president of Davis Bancorp, who also serves as a board member of the Secure Cash Transport Association and Co-Chair of the Business Resiliency Subcommittee at the Federal Reserve Bank Cash Advisory Council, is requesting support of payment choice legislation to protect every American’s ability to choose cash or cashless payment options. He further warned that the practice of prohibiting cash payment is harmful and disproportionally impacting the working poor and people of color. The letter was sent to the Illinois Congressional delegation and to the House Financial Services Committee and Senate Commerce, Science and Transportation Committee.
“While the COVID-19 pandemic has affected all of us, it is no secret that it has been particularly devastating for those who have the least. You may not be aware that throughout Chicago and around the country some well-meaning companies and businesses have banned the use of cash and moved to a cashless system for all of their business transactions,” Davis said in the letter. “Although this decision may seem reasonable on first glance, it is neither safer and is indeed harmful while disproportionally impacting the working poor and people of color,” he added.
Davis went on to note official transmission guidance by the CDC and Massachusetts Institute of Technology that states that the virus spreads primarily from person to person and moreover, cash poses the same or less risk than plastic/card payments. “In other words, there is no scientific basis for this new concern about the safety of cash,” Davis continued. “The real danger of this policy is for those already disproportionately suffering from the virus and that an inability to pay with cash means a reliance on costly third-party digital networks and sacrifice of consumer privacy. Most importantly, it means limited access to basic goods and services needed to survive,” he continued.
According to the Federal Reserve System efforts to ban and discourage cash transactions are mounting even though 25% of Americans rely on cash to complete daily transactions, and over 50 million Americans have little to no access to formal banking channels. “Considering the challenging economic environment and bureaucratic difficulty of accessing credit for many, banning cash constitutes disenfranchisement based on payment choice and direct discrimination against millions of citizens,” Davis warned.
Davis continued by saying his work provides a unique perspective on the policy shift, particularly at this challenging time. “As a cash logistics and armored car company, we serve the needs of thousands of area institutions, banks, and businesses in Chicago and throughout the state. Especially vital during times of economic difficulty, our services help facilitate individuals successfully cashing paychecks to make ends meet and small shops depositing sales to pay their bills,” said Davis. “Moreover, the resiliency of our payment system is also at stake. In times of national disaster and infrastructure stress like extreme weather or power outages, cash is the only means for commerce to continue,” he concluded.
About Davis Bancorp:
Founded in 1951, Davis Bancorp is a privately held American, protective services and cash-in-transit company. For over seventy years our attention to detail and professionalism has garnered us the lasting trust of banks, retailers, and other organizations.
SOURCE Davis Bancorp