Payment Choice Act of 2025

This bill would require most stores that take in-person payments to accept cash for purchases up to $500 per sale. Stores could not charge a higher price to people who pay with cash. There are limited exceptions, like a temporary system outage, not having enough change, or if the store offers a free, on-site machine that turns cash into a prepaid card without collecting your personal info and with no fees to use the card. An inactivity fee on that card is allowed only after 12 months with no use, no more than once a month, and clearly disclosed on the machine and card .

For the first five years, stores would not have to accept $50 bills or larger. After that, the government must set rules, but $1, $5, $10, and $20 bills must be accepted. If a store breaks the rules, a customer can send written notice and, if not fixed within 45 days, sue. Penalties include at least $250 in damages, plus civil fines that can rise for repeat violations. Courts may award up to $3,000 in attorney’s fees to the winner. Stronger state or local consumer protections would still apply. The bill also requires yearly public reports on where bank and credit union ATMs are located across the country .

Key points:

• Who is affected: Retail stores and service businesses that take in-person payments; consumers who want to pay cash .
• What changes: Must accept cash up to $500; no extra charge for paying cash; limited exceptions and rules for prepaid-card kiosks; enforcement and penalties; states can do more to protect consumers .
• When: $50+ bills can be refused for the first five years; annual ATM location reports start one year after the law takes effect .