H.R.1138 - Payment Choice Act of 2025 (119th Congress)
Summary
H.R.1138, the Payment Choice Act of 2025, aims to ensure that U.S. currency is accepted as legal tender at brick-and-mortar businesses for in-person transactions. The bill prohibits retail businesses from refusing cash payments up to $500 per transaction and prevents them from charging cash-paying customers higher prices. It includes exceptions for system failures, insufficient change, and the provision of fee-free cash-to-prepaid card devices.
Expected Effects
The bill's enactment would mandate businesses to accept cash, potentially benefiting consumers who prefer or rely on cash transactions. It could also lead to increased costs for businesses in handling cash and potential legal challenges regarding enforcement and preemption of state laws. The Secretary of the Treasury would be tasked with issuing rules to implement and provide additional exceptions to the requirements.
Potential Benefits
- Ensures consumers have the option to use cash for in-person transactions.
- Protects individuals who may not have access to or prefer not to use electronic payment methods.
- Prevents businesses from discriminating against cash-paying customers by charging higher prices.
- Provides a legal framework for enforcing the acceptance of cash payments.
- Offers exceptions for businesses facing temporary technical or logistical challenges in accepting cash.
Most Benefited Areas:
Potential Disadvantages
- May increase operational costs for businesses due to cash handling, security, and reconciliation.
- Could lead to potential conflicts with existing state laws that may have different regulations regarding cash acceptance.
- Enforcement mechanisms rely on individual customer action, potentially leading to inconsistent application.
- The $500 limit may not be sufficient for all transactions, creating inconvenience for some consumers.
- The exception for cash-to-prepaid card devices could introduce new fees or complexities for consumers.
Constitutional Alignment
The bill's alignment with the U.S. Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8). The bill aims to standardize payment methods across states, which falls under the purview of interstate commerce regulation. The enforcement mechanisms, allowing for civil actions, align with the concept of due process, although the specific penalties and attorney's fees provisions could be subject to scrutiny under the Fifth Amendment.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).