Payment Choice Act of 2025
The Payment Choice Act of 2025 would require brick-and-mortar retailers to accept United States currency (cash) for in-person purchases, nationwide. Specifically, retailers who take in-person payments at physical locations would be required to accept cash up to $500 per transaction and may not charge cash-paying customers more than those paying with non-cash methods. The bill creates specific exceptions (e.g., temporary cash-processing system failures, or on-premises devices that convert cash to prepaid cards under tight safeguards). It also imposes a temporary limit on requiring the acceptance of large denomination bills (no obligation to accept $50 or larger bills for five years, after which Treasury would set rules to require $1, $5, $10, and $20 denominations). The act establishes enforcement mechanisms, including private civil action with damages and penalties, and allows federal participation or help from the Attorney General. The Secretary of the Treasury would issue implementing rules, and the act would not preempt stronger protections under state or local law. In short, the bill aims to guarantee cash as a legally recognized payment option for in-person retail purchases, while balancing this with time-limited allowances for large denominations and a framework for enforcement and rulemaking.
Key Points
- 1Cash acceptance and price parity: Retailers that accept in-person payments at a physical location must accept cash for sales up to $500 per transaction and cannot charge cash-paying customers more than other customers. This establishes cash as a legally usable payment form at participating stores nationwide.
- 2Exceptions and on-premises cash-to-prepaid options: The requirement does not apply in certain cases, such as system outages or temporary cash-on-hand shortages. It also allows on-site devices that convert cash to prepaid cards if the device is fee-free, requires no more than a $1 minimum deposit, prepaid funds don’t expire (except as allowed by the bill), does not collect personal information, and imposes no usage fee.
- 3Inactivity fees for prepaid cards: If a store uses a cash-to-prepaid-card device, it may charge an inactivity fee only after 12 months of no activity, and only once per month. The device must clearly disclose the possibility and details of the inactivity fee (amount, frequency, and that it may be charged).
- 4Large-denomination cash rule (temporary): For five years after enactment, retailers are not required to accept $50 or larger bills. After five years, the Treasury must issue a rule specifying which denominations must be accepted (the bill would require acceptance of $1, $5, $10, and $20 bills in such rule).
- 5Enforcement, damages, and penalties: Individuals who are harmed or at risk of harm from violations may pursue civil action. Damages include actual damages (with a minimum liquidated amount of $250 if actual damages are less) and civil penalties (up to $500 for a first offense and up to $1,500 for subsequent offenses). Private parties can sue in federal or other courts, and the Attorney General may intervene or help appoint counsel in appropriate cases.
- 6Rulemaking and preemption: The Secretary of the Treasury would issue implementing rules and may specify additional exceptions. The bill does not prohibit states or localities from maintaining stronger consumer protections, and it would not preempt those protections where they are more protective than the federal standard.
- 7Sense of Congress: The bill expresses a national view that U.S. currency should be treated as legal tender and that consumers have the right to use cash at retail businesses that accept in-person payments.