Payment Choice Act of 2025
Summary
The Payment Choice Act of 2025 aims to ensure that U.S. currency is accepted as legal tender at brick-and-mortar businesses for in-person transactions up to $500. It prohibits retailers from refusing cash payments or charging cash-paying customers a higher price. The bill outlines exceptions for system failures, insufficient change, and the provision of fee-free cash-to-prepaid card conversion devices.
Expected Effects
This act would mandate most retail businesses to accept cash payments, providing consumers with the option to use cash. It establishes enforcement mechanisms, including preventative relief and potential damages for violations. The Act also includes provisions for future rulemaking regarding acceptable bill denominations and annual reports on ATM distribution.
Potential Benefits
- Ensures consumers have the option to use cash for transactions.
- Protects individuals who may not have or prefer not to use electronic payment methods.
- Provides a legal framework for enforcing the acceptance of cash.
- Offers exceptions for businesses facing technical difficulties or providing cash-to-card solutions.
- May reduce reliance on digital payment systems, enhancing financial privacy for some individuals.
Most Benefited Areas:
Potential Disadvantages
- May increase transaction costs for businesses due to cash handling.
- Could create enforcement challenges and potential legal disputes.
- May not fully address the underlying reasons for businesses refusing cash (e.g., security concerns).
- The $500 limit may not be sufficient for all transactions.
- The exception for cash-to-card devices could introduce new fees or data collection practices if not carefully monitored.
Constitutional Alignment
The Payment Choice Act of 2025 does not directly implicate specific clauses of the U.S. Constitution. However, it indirectly relates to Congress's power to regulate commerce (Article I, Section 8) and to coin money and regulate its value. The Act's provisions for enforcement and penalties are subject to due process considerations under the Fifth and Fourteenth Amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).