Last week, Pennsylvania Senator John Fetterman introduced the Payment Choice Act in Congress.
The bill would make it illegal for businesses to refuse cash as payment. It requires businesses to either accept cash or to provide a device that converts cash to prepaid cards without fees.
The pending legislation would allow businesses to refuse payments made with $50 bills or larger for five years.
Fetterman is joined by Republican Senator Kevin Cramer of North Dakota in leading the bipartisan effort to preserve cash payment rights.
“It’s simple: if you’re open for business in America, you should take U.S. dollars. I’m proud to introduce the bipartisan Payment Choice Act with Senator Cramer because every American should be able to use paper currency if they choose. We have millions of people in this country who don’t have access to bank accounts, and they must be able to go shopping with their hard-earned dollars,” Fetterman said in a statement.
If the bill is signed into law, companies that are found in noncompliance would be fined up to $1,500.
Currently, businesses are permitted to regulate their own policies on cash.
“Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise,” according to the Federal Reserve website.
In 2019, the city of Philadelphia banned cashless businesses.
Oregon, New Jersey, Massachusetts, and Washington, D.C. are some of the places around the country that have enacted laws requiring businesses to accept cash.
“Cash is still legal tender in the United States, despite some businesses’ exclusive acceptance of electronic payments. 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,” said Senator Cramer in a statement.
