A bipartisan pair of U.S. senators is working to ensure that Americans can continue to use cash as a payment method at brick-and-mortar businesses. Sen. John Fetterman, D-Penn., and Sen. Kevin Cramer, R-N.D., have introduced the Payment Choice Act, a bill that would prohibit businesses from refusing cash payments up to $500.
The legislation would guarantee consumers the right to pay with paper currency, even at establishments that claim to only accept electronic payments.
This isn’t Congress’ first attempt at passing such legislation. The Payment Choice Act failed to make it to the president’s desk in 2019 and 2023.
Protecting consumer choice
The bill would also prohibit businesses from charging fees to customers who choose to pay with cash.
“It’s simple: If you’re open for business in America, you should take U.S. dollars,” Fetterman said in a statement.
“Cash is still legal tender in the United States, despite some businesses’ exclusive acceptance of electronic payments,” Cramer said. “Forcing the use of credit and debit cards or imposing premium prices on goods and services paid for with cash limits consumer choice. Americans should have the option of using cards or cash, but they should be the ones who make that choice.”
The bill outlines limited exceptions, including if a business has “a device that converts cash into prepaid cards” without a fee, or if the business does not have enough cash to make change.
The shift toward digital payments
Mobile payments and digital wallets became prominent in the 2010s, as smartphones enabled consumers to pay using apps like Apple Pay, Google Pay and Venmo. During the COVID-19 pandemic, many retail businesses moved to contactless and digital payment options to minimize physical contact.
Millions still rely on cash
According to the Federal Deposit Insurance Corporation (FDIC), 4.2% of U.S. households — roughly 5.6 million — did not have a bank account in 2023.
“Despite a decline in cash payments during the last few years, this demographic still represents nearly 20% of all payments in the U.S. economy,” a press release from Fetterman’s office states.
