A provision in Maryland's HB191 will require many retail stores to accept cash for essential purchases—and it takes effect in less than two years.
Most Maryland retail owners haven't heard of it yet, but a buried provision in HB191 will reshape how they handle payments for essential goods starting October 1, 2026. The rule is straightforward on its face, but the operational and compliance details matter.
Under § 14–1330(C) of HB191, small retail establishments that sell food, water, hygiene products, health products, or fuel must accept cash for in-person transactions between $5 and $300. This requirement applies during a specific window: 6 AM to 10 PM daily.
The law also prohibits merchants from charging cash customers more than they charge card customers for the same purchase. In other words, you cannot impose a surcharge or offer a discount exclusively to card users.
Cash payments must be accepted in denominations up to $20.
The rule applies to "small retail establishments"—a category that includes most independent and regional grocery stores, convenience stores, pharmacies, gas stations, and other outlets selling the listed essential goods. Large national chains may face different requirements under the law, so retailers should review the full text to confirm their classification.
If your store sells any of these categories and operates during the 6 AM–10 PM window, you are likely in scope.
Retailers have two main paths forward:
Accept cash directly. Install or upgrade cash handling systems, train staff, and ensure registers can process cash transactions for the $5–$300 range during operating hours. You'll need to manage cash security, reconciliation, and deposit procedures.
Use a conversion device. Install a cash-to-prepaid-card conversion device that allows customers to convert cash into a prepaid card at the point of sale. This satisfies the law's requirement without handling physical cash, though it involves equipment costs and customer education.
Either way, your pricing systems must ensure no customer pays more for using cash than for using a card. This applies to all transactions in the $5–$300 range during the 6 AM–10 PM window.
The effective date is October 1, 2026. Retailers should begin planning now—especially if they need to evaluate payment technology, train staff, or adjust pricing systems. Compliance decisions made in 2025 will be easier to implement than last-minute changes in September 2026.
Review the full text of HB191, § 14–1330(C), to confirm your store's classification and obligations. If you sell essential goods and operate during the specified hours, begin assessing your current payment infrastructure and whether you'll accept cash directly or use a conversion device. Consult with your point-of-sale provider about compliance options.
Trade associations and business groups in Maryland have published detailed guides to this provision. A free, business-specific resource is available through your local retail association.