Payment Choice Act of 2025
This bill requires retail businesses to accept cash as a form of payment for on-site sales of $500 or less and it prohibits them from charging cash-paying customers a higher price compared to customers not paying with cash. Businesses covered by this bill are those engaged in the business of selling or offering goods or services at retail to the public that accept in-person payments at a physical location.
The bill establishes exceptions for this requirement, including by allowing a business to provide a device to provide prepaid cards on site for customers to use as payment. Among other requirements, such a card must not have a fee associated with its use and must not require a minimum payment of more than $1.
The bill provides for enforcement through preventative relief, damages, and civil penalties.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1138 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1138
To ensure that United States currency is treated as legal tender to be
accepted as payment for purchases of goods and services at brick-and-
mortar businesses throughout the United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2025
Mr. Rose (for himself, Mr. Norcross, Ms. Garcia of Texas, Mr. Kustoff,
Mrs. Beatty, Mr. Smith of New Jersey, Mr. Ivey, Mr. Davidson, and Mr.
Gottheimer) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To ensure that United States currency is treated as legal tender to be
accepted as payment for purchases of goods and services at brick-and-
mortar businesses throughout the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Payment Choice Act of 2025''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that United States currency should be
treated as legal tender throughout the United States, and that every
consumer should have the right to use cash as payment at retail
businesses that accept in-person payments.
SEC. 3. RETAIL BUSINESSES PROHIBITED FROM REFUSING CASH PAYMENTS.
(a) In General.--Subchapter I of chapter 51 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 5104. Retail businesses prohibited from refusing cash payments
``(a) In General.--Any person engaged in the business of selling or
offering goods or services at retail to the public who accepts in-
person payments at a physical location (including a person accepting
payments for telephone, mail, or internet-based transactions who is
accepting in-person payments at a physical location)--
``(1) shall accept cash as a form of payment for sales made
at such physical location in amounts up to and including $500
per transaction; and
``(2) may not charge cash-paying customers a higher price
compared to the price charged to customers not paying with
cash.
``(b) Exceptions.--Subsection (a) shall not apply to a person if
the person--
``(1) is unable to accept cash because of--
``(A) a sale system failure that temporarily
prevents processing cash payments; or
``(B) temporarily having insufficient cash on hand
to make change; or
``(2) provides customers with a device that converts cash
into prepaid cards on the premises if--
``(A) there is no fee for the use of the device;
``(B) the device does not require a minimum deposit
of more than one dollar;
``(C) any funds placed onto a prepaid card using
the device do not expire, except as permitted under
subsection (c);
``(D) the device does not collect any personal
identifying information from the customer; and
``(E) there is no fee to use the prepaid card that
the device produces.
``(c) Inactivity.--With respect to a prepaid card described under
paragraph (2), the person providing the card may charge an inactivity
fee in association with the card if--
``(1) there has been no activity with respect to the card
during the 12-month period ending on the date on which the
inactivity fee is imposed;
``(2) not more than 1 inactivity fee is imposed in any 1-
month period; and
``(3) there is clearly and conspicuously stated, on the
face of the mechanism that issues the card and on the card--
``(A) that an inactivity fee or charge may be
imposed;
``(B) the frequency at which such inactivity fee
may be imposed; and
``(C) the amount of such inactivity fee.
``(d) Right To Not Accept Large Bills.--
``(1) In general.--Notwithstanding subsection (a), for the
5-year period beginning on the date of enactment of this
section, this section does not require a person or entity to
accept cash payments in $50 bills or any larger bill.
``(2) Rulemaking.--
``(A) In general.--The Secretary of the Treasury
shall issue a rule on the date that is 5 years after
the date of the enactment of this section with respect
to any bill denominations a person is not required to
accept.
``(B) Requirement.--When issuing a rule under
subparagraph (A), the Secretary shall require persons
to accept $1, $5, $10, and $20 bills.
``(e) Enforcement.--
``(1) Preventative relief.--
``(A) In general.--Whenever any person has engaged,
or there are reasonable grounds to believe that any
such person is about to engage, in any act or practice
prohibited by this section, any customer or prospective
customer of such person aggrieved by such violation or
threatened violation may deliver to the person, or
cause to be so delivered by certified mail, with proof
of delivery, a notice describing, in reasonable detail,
the conduct or events constituting the violation or
threatened violation, and giving notice that, unless
such conduct is corrected or cured within 45 days after
the date of delivery of such notice, a civil action for
preventive relief, including an application for a
permanent or temporary injunction, restraining order,
or other appropriate such relief, which may include a
civil penalty as hereinafter provided for, may be
brought against such person.
``(B) Response; cure.--If, within the 45-day period
described under subparagraph (A), the person described
in that subparagraph establishes to the customer or
prospective customer's reasonable satisfaction, in a
response provided in writing to the customer or
prospective customer, that no violation occurred as
alleged, or certifies that the violation alleged has
been corrected or cured, and provides reasonable
assurance that no such violation henceforth will be
permitted to occur in the conduct of the person's
business, no further proceedings under this section may
be undertaken.
``(C) Civil action.--If a person described under
subparagraph (A), having received a notice described in
that subparagraph, fails to respond in accordance with
subparagraph (B), or responds but fails to reasonably
establish that the violation alleged either did not
occur or has been corrected or cured, the aggrieved
customer or prospective customer shall be entitled to
file a civil action against the person seeking relief
as provided under this subsection. In any such filing,
the customer or prospective customer shall attach to
the complaint in such action copies of the notice given
to the person pursuant to subparagraph (A) and the
response, if any, received from such person.
``(2) Damages and civil penalties.--Any person who violates
this section shall--
``(A) be liable for actual damages, together with,
if actual damages are less than $250, liquidated
damages of $250; and
``(B) a civil penalty of not more than $500 for a
first offense and not more than $1,500 for a second or
subsequent offense.
``(3) Jurisdiction.--An action under this subsection may be
brought in any United States district court, or in any other
court of competent jurisdiction.
``(4) Intervention of attorney general.--Upon timely
application, a court may, in its discretion, permit the
Attorney General to intervene in a civil action brought under
this subsection, if the Attorney General certifies that the
action is of general public importance.
``(5) Authority to appoint court-paid attorney.--Upon
application by an individual and in such circumstances as the
court may determine just, the court may appoint an attorney for
such individual and may authorize the commencement of a civil
action under this subsection without the payment of fees,
costs, or security.
``(6) Attorney's fees.--In any action commenced pursuant to
this subsection, the court, in its discretion, may allow the
prevailing party, other than the United States, a reasonable
attorney's fee, not to exceed $3,000 in amount, as part of the
costs, and the United States shall be liable for costs the same
as a private person.
``(7) Requirements in certain states and local areas.--In
the case of an alleged act or practice prohibited by this
section which occurs in a State, or political subdivision of a
State, which has a State or local law prohibiting such act or
practice and establishing or authorizing a State or local
authority to grant or seek relief from such act or practice or
to institute criminal proceedings with respect thereto upon
receiving notice thereof, no civil action may be brought
hereunder before the expiration of 30 days after written notice
of such alleged act or practice has been given to the
appropriate State or local authority by registered mail or in
person, provided that the court may stay proceedings in such
civil action pending the termination of State or local
enforcement proceedings.
``(f) Greater Protection Under State Law.--This section shall not
preempt any law of a State, the District of Columbia, a Tribal
government, or a territory of the United States if the protections that
such law affords to consumers are greater than the protections provided
under this section.
``(g) Rulemaking.--The Secretary of the Treasury shall issue such
rules as the Secretary determines are necessary to implement this
section, which may include prescribing additional exceptions to the
application of the requirements described in subsection (a).''.
(b) Clerical Amendment.--The table of contents for chapter 51 of
title 31, United States Code, is amended by inserting after the item
relating to section 5103 the following:
``5104. Retail businesses prohibited from refusing cash payments.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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