Payment Choice Act of 2025
Key claim: The Payment Choice Act of 2025 would require retail businesses to accept cash for on-site sales of $500 or less and prohibit charging cash-paying customers a higher price than non-cash customers.
Abstract
(HR1138 · 119th Congress) 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. Latest action (2025-02-07): Referred to the House Committee on Financial Services.
Why this matters
Cash-acceptance mandates directly affect merchants and consumers by constraining cashless business models and protecting unbanked or privacy-conscious shoppers from being surcharged or refused service. The $500 ceiling and price-parity rule set a federal floor on top of a patchwork of state and city anti-cashless laws, and would shape point-of-sale design for retailers, payment processors, and fintechs promoting card- or app-only checkout.