Payment Choice Act of 2025

Summary#

This bill adds a new section to federal law that says many in-person retail businesses must accept United States currency (cash) for purchases. It requires businesses that take in-person payments at a physical location to accept cash for transactions up to $500 and forbids charging cash customers a higher price than non-cash customers. The bill lists exceptions, such as temporary system failure or not having sufficient change. Businesses may instead offer a free, on-site device that converts cash into a prepaid card if the device and card meet specific rules (no fees, no personal data collected, low minimum deposit, funds do not expire except as allowed). The bill lets prepaid cards have an inactivity fee only after 12 months of no activity, with limits and required disclosures. For five years after enactment, businesses are not required to accept $50 or larger bills; the Treasury Secretary must issue a rule after five years about which denominations must be accepted and must require acceptance of $1, $5, $10, and $20 bills. The bill creates a private right of action for customers: a customer must send a 45-day notice before suing, and if the violation is not cured they may seek damages, injunctions, and civil penalties. Damages include actual damages or liquidated damages of $250 if actual damages are less. Civil penalties may be up to $500 for a first offense and up to $1,500 for later offenses. The bill allows Attorney General intervention, court-appointed attorneys in some cases, and limited attorney fee awards. It does not preempt state or local laws that provide greater consumer protections and directs the Treasury Secretary to issue rules to implement the section.

What it means for you#

  • If you shop in person, you generally have the right to pay with cash for purchases up to $500 and cannot be charged a higher price for using cash.
  • Retailers who accept in-person payments must keep cash acceptance available unless a listed exception applies (temporary system failure or short on change).
  • Some stores may offer a free device that converts your cash into a prepaid card instead of taking cash directly; that card must meet protections like no fees for issuance and limits on data collection.
  • Large bills ($50 and larger) may be refused for the first five years after the law takes effect; after five years the Treasury will set required denominations to accept.

Expenses#

  • No publicly available information on overall federal budget costs from the bill.
  • The bill sets monetary penalties and damages that businesses could face: actual damages (or liquidated damages 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.
  • Courts may award reasonable attorney fees to prevailing private parties up to $3,000, and the United States is liable for costs the same as a private person under the bill's provisions.

Proponents' View#

The bill states the sense of Congress that United States currency should be treated as legal tender and that every consumer should have the right to use cash for in-person retail purchases. Sponsors introduced the bill to ensure cash remains accepted at brick-and-mortar businesses and to protect consumers who rely on cash.

Opponents' View#

No publicly available information.