Is cash still king? Is it legal for businesses to insist customers pay by credit card or bank transfer? 1News reporter Taylor Rice follows the money to uncover where transaction trends are taking us.
Restaurants are deciding to refuse cash payments in a trend that is “growing steadily”, according to the Restaurant Association of New Zealand.
The association, with 2000 members across the country, told 1News some restaurants are making the switch to save costs on bank deposit fees, for safety concerns, or for time-consuming reconciliations and to reduce human error.
“It’s not just about convenience — it’s a financial and operational decision for many small businesses,” association chief executive Marisa Bidois said.
At the same time, New Zealand First this week introduced a Member’s Bill to mandate trade vendors to accept cash payments for goods valued up to $500 – meaning if passed, cash payments would have to be accepted by law.
Its leader, Winston Peters, said cash remains a “critical tool” for people in vulnerable positions, such as rural, elderly, or low-income communities.
The split in opinion highlights strong views on both sides.
While more restaurants are deciding to go cash-free, Peters’ proposal has also gained traction – garnering more than 15,000 likes on Facebook two days after the policy was announced.
Is money unsafe?
Takapuna Surf Club — a rooftop restaurant opened in March on Auckland’s North Shore — has decided to go cash-free, “purely to prioritise the safety of our staff”.
The restaurant, owned by hospitality group Five Fellas who also launched Dr Rudi’s and Saint Alice, said about 15-20% of customers paid by cash in the past.
“Over recent years, we’ve seen a noticeable increase in armed robberies and theft-related violence in both the retail and hospitality sectors,” said co-founder Reuben Ruscoe.
Ruscoe said incidents close to home such as an aggravated robbery at neighbouring restaurant Tokyo Bay earlier this year had “directly influenced” their decision to go cash-free.
“Sadly, these incidents are no longer isolated events and have reached a stage where we simply don’t feel comfortable accepting cash on-site anymore. Ultimately, the safety risks for our staff are just too great.”
He said the decision to go cash-free has been well received by customers overall, but there has been a small number of negative reactions.
“Thankfully, these instances are not too frequent and most people are understanding regarding our stance on placing our staff safety’s at the forefront.”
Ruscoe acknowledged going cashless can be an inconvenience for some and “not everyone will agree” – and appreciated the restaurant “may lose customers” over the policy.
“However, for us, this is non-negotiable. There is absolutely nothing more important to the five of us (owners) than ensuring our team feels safe and supported at work.”
When disaster strikes
Peters argued a law to protect cash use would help those who “may experience barriers to digital banking”.
For some in rural communities, Cyclone Gabrielle highlighted the value cash still held in certain situations.
In 2023, it was reported one East Coast man became the “Ruatoria ATM” after he travelled hours to access to cash while the real ATMs — and much of the region’s internet — remained offline.
Peters said the Bill, if drawn from the ballot, would support access to cash and its circulation.
“People who rely on cash due to barriers to digital banking deserve assurance that cash will be preserved in the increasingly digital world,” he said.
“The Bill ensures that New Zealander’s maintain freedom of choice in how they pay, preserving cash as what it should be: an enduring private and reliable option.
“By protecting the sanctity of cash transactions, the Bill upholds personal privacy, maintains sovereign control over New Zealand’s monetary system, and lessens the risks posed by digital-only payment systems.”
In response to queries from 1News, the Restaurant Association surveyed its members about whether customers still preferred to pay with cash.
One response said it has many tourists among its clientele and would certainly “lose money” if it chose to not accept cash.
Another said: “People are scared to use cards now. So many old age people use cash to be safe [from] being scammed.”
Cash ‘still king’ for some restaurants
While going cash-free is a growing trend, the association head Bidois said it still “isn’t universal” and cash use can vary, based on location and customer base.
“Older New Zealanders and international tourists are the most likely to pay with cash,” she said. “For many businesses, that small segment matters, especially in communities with limited digital access.”
The associated noted one of the members surveyed would prefer to stop using cash, but felt it should continue “out of respect for older customers”.
“Another said their food truck sees almost no cash anymore, while a rural café told us cash was still 20% of their trade,” Bidois said. “These stories highlight that hospitality is not one-size-fits-all. The reality is nuanced.
“We’re hearing loud and clear that cash is still king for many of our members — especially small, independently owned businesses.
“In fact, more than half of our survey respondents said they still accept cash, with many noting it’s a preferred option for customers, particularly older New Zealanders and tourists. That said, there’s an undeniable trend towards digital — driven not by preference, but by cost and convenience.”
Bidois said some members also raised concerns about social inclusion and accessibility but others were now “proudly cashless”.
“It’s a reminder that hospitality isn’t homogenous. Whether you’re running a food truck in a rural town or a high-volume restaurant in the city, your payment needs and customer base can look completely different.”
Back at the Takapuna Surf Club, Ruscoe said he and his team aren’t supporters of the NZ First policy, although they accepted it may be well-intentioned.
“We believe businesses should have the right to make operational decisions based on their unique circumstances, especially when those decisions are focused on keeping their people safe.”
