A bipartisan Senate duo is pushing legislation that would require brick-and-mortar businesses to accept cash payments from customers, saying paper money remains legal tender despite a general transition to electronic payments.
Sen. John Fetterman, Pennsylvania Democrat, and Sen. Kevin Cramer, North Dakota Republican, said Americans should be able to choose which form of payment they use and should not face surcharges from places that prefer card payments.
“It’s simple: If you’re open for business in America, you should take U.S. dollars,” Mr. Fetterman said.
The Payment Choice Act serves as a rebuke to eateries, stadium vendors and other entities that forsake cash and require credit or debit card payments.
Lawmakers said they are mindful of the 4.5% of U.S. households who do not have a checking or savings account. They said these Americans are more likely to be poor or a member of a minority group.
“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,” Mr. Fetterman said.
It is generally legal for businesses to refuse cash, although some state and city laws require businesses to accept it. There are no federal laws or regulations requiring businesses to accept cash, however.
“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,” Mr. Cramer said.
While some vendors prefer cash, and supply a discount for using it, bill sponsors say sometimes the reverse is true and that the practice should be banned.
The bill says businesses with physical locations must take cash in amounts up $500 per transaction, and “may not charge cash-paying customers a higher price compared to the price charged to customers not paying with cash.”
The legislation would exempt businesses from its requirements in cases where a payment-system failure prevents them from taking cash or they don’t have adequate cash on hand to provide change.
The legislation also allows businesses to provide systems that convert cash into prepaid cards, so long as there isn’t a fee to use them.
Businesses who violate the rules would be subject to certain damages and a civil penalty of not more than $500 for a first offense and not more than $1,500 for a subsequent offense.
The bill is supported by the Amusement & Music Operators Association and a key trade group for ATMs.
“The continued vitality and universality of cash in America is essential to maintaining the U.S. dollar’s position abroad as the world’s premier fiat currency, while also preserving personal financial freedom of choice and purchasing privacy for us all here at home,” said the Bruce Renard, executive director of the National ATM Council.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.