Payment Choice Act of 2025

2. The Impact:

• Consumers and families gain a clear right to use cash at brick-and-mortar stores for transactions up to $500 and cannot be charged more for paying with cash.

• Retail businesses that accept in-person payments would have to accept cash up to $500 per transaction, face notice-and-cure procedures, and risk civil penalties up to $500 for a first offense and $1,500 for repeat offenses.

• Operators of on-site cash-to-prepaid-card machines can offer them if there is no device fee, deposits are no more than $1, the card balance does not expire, the device does not collect personal data, and reasonable inactivity fees may apply after 12 months with clear disclosure.

• Individuals denied cash can seek relief in court after a 45-day cure period, with liquidated damages of $250 if actual damages are lower and an attorney fee cap of $3,000 for prevailing private parties.

• Federal law would not block stronger state, District, Tribal, or territorial consumer protections and gives the Treasury Secretary rulemaking authority, including setting which large denominations may be excluded after a five-year phase-in and a required rule on required denominations.

3. The Bottom Line: This bill would create a statutory right to use cash in many retail settings and a private and public enforcement framework without a specified federal cost in the sources provided.