S. 2326: Payment Choice Act of 2025

The "Payment Choice Act of 2025" is a proposed bill that aims to establish the use of United States currency, specifically cash, as a mandatory method of payment for purchases at brick-and-mortar retail businesses across the country. Here are the main components of the bill:

Purpose

The bill emphasizes that cash should be recognized as legal tender for transactions in the United States. It asserts that consumers should always have the option to pay with cash when they shop in person at retail locations.

Requirements for Retailers

The bill sets specific rules for retail businesses regarding cash payments:

• Any retail business that allows in-person payments must accept cash for transactions of up to $500.
• Retailers are prohibited from charging higher prices for customers who pay with cash compared to those who pay through other forms.

Exceptions to Cash Acceptance

There are circumstances under which a retailer may not be required to accept cash:

• If a retailer is temporarily unable to accept cash due to a system failure or insufficient cash on hand.
• If a retailer uses a device that converts cash into prepaid cards on the premises, as long as there are no associated fees or minimum deposits over one dollar, and no personal information is collected.

Limitation on Large Bills

For the first five years after the bill becomes law, retailers are not required to accept cash payments in denominations of $50 or larger.

Enforcement Provisions

The bill outlines enforcement mechanisms including:

• Customers can notify retailers of violations and provide a 45-day period to resolve the issue before pursuing legal action.
• Retailers failing to comply may face actual damages, liquidated damages, or civil penalties for violations.
• Civil actions can be initiated in any U.S. district court.

Annual Reporting

The bill mandates annual reports from federal agencies on the availability and location of automated teller machines (ATMs) owned by federally insured depository institutions.

State and Local Laws

The bill does not override any state or local laws that provide greater consumer protection concerning payment methods.

Rulemaking Authority

The Secretary of the Treasury is granted the authority to create additional rules necessary for the implementation of the requirements outlined in the bill.

Relevant Companies

None found