HR1138-119

1. Short title This Act may be cited as the Payment Choice Act of 2025.

2. Sense of Congress It is the sense of Congress that United States currency should be treated as legal tender throughout the United States, and that every consumer should have the right to use cash as payment at retail businesses that accept in-person payments.

3. Retail businesses prohibited from refusing cash payments Subchapter I of chapter 51 of title 31, United States Code, is amended by adding at the end the following: Any person engaged in the business of selling or offering goods or services at retail to the public who accepts in-person payments at a physical location (including a person accepting payments for telephone, mail, or internet-based transactions who is accepting in-person payments at a physical location)— shall accept cash as a form of payment for sales made at such physical location in amounts up to and including $500 per transaction; and may not charge cash-paying customers a higher price compared to the price charged to customers not paying with cash. Subsection (a) shall not apply to a person if the person— is unable to accept cash because of— a sale system failure that temporarily prevents processing cash payments; or temporarily having insufficient cash on hand to make change; or provides customers with a device that converts cash into prepaid cards on the premises if— there is no fee for the use of the device; the device does not require a minimum deposit of more than one dollar; any funds placed onto a prepaid card using the device do not expire, except as permitted under subsection (c); the device does not collect any personal identifying information from the customer; and there is no fee to use the prepaid card that the device produces. With respect to a prepaid card described under paragraph (2), the person providing the card may charge an inactivity fee in association with the card if— there has been no activity with respect to the card during the 12-month period ending on the date on which the inactivity fee is imposed; not more than 1 inactivity fee is imposed in any 1-month period; and there is clearly and conspicuously stated, on the face of the mechanism that issues the card and on the card— that an inactivity fee or charge may be imposed; the frequency at which such inactivity fee may be imposed; and the amount of such inactivity fee. Notwithstanding subsection (a), for the 5-year period beginning on the date of enactment of this section, this section does not require a person or entity to accept cash payments in $50 bills or any larger bill. The Secretary of the Treasury shall issue a rule on the date that is 5 years after the date of the enactment of this section with respect to any bill denominations a person is not required to accept. When issuing a rule under subparagraph (A), the Secretary shall require persons to accept $1, $5, $10, and $20 bills. Whenever any person has engaged, or there are reasonable grounds to believe that any such person is about to engage, in any act or practice prohibited by this section, any customer or prospective customer of such person aggrieved by such violation or threatened violation may deliver to the person, or cause to be so delivered by certified mail, with proof of delivery, a notice describing, in reasonable detail, the conduct or events constituting the violation or threatened violation, and giving notice that, unless such conduct is corrected or cured within 45 days after the date of delivery of such notice, a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other appropriate such relief, which may include a civil penalty as hereinafter provided for, may be brought against such person. If, within the 45-day period described under subparagraph (A), the person described in that subparagraph establishes to the customer or prospective customer’s reasonable satisfaction, in a response provided in writing to the customer or prospective customer, that no violation occurred as alleged, or certifies that the violation alleged has been corrected or cured, and provides reasonable assurance that no such violation henceforth will be permitted to occur in the conduct of the person’s business, no further proceedings under this section may be undertaken. If a person described under subparagraph (A), having received a notice described in that subparagraph, fails to respond in accordance with subparagraph (B), or responds but fails to reasonably establish that the violation alleged either did not occur or has been corrected or cured, the aggrieved customer or prospective customer shall be entitled to file a civil action against the person seeking relief as provided under this subsection. In any such filing, the customer or prospective customer shall attach to the complaint in such action copies of the notice given to the person pursuant to subparagraph (A) and the response, if any, received from such person. Any person who violates this section shall— be liable for actual damages, together with, if actual damages are less than $250, liquidated damages of $250; and a civil penalty of not more than $500 for a first offense and not more than $1,500 for a second or subsequent offense. An action under this subsection may be brought in any United States district court, or in any other court of competent jurisdiction. Upon timely application, a court may, in its discretion, permit the Attorney General to intervene in a civil action brought under this subsection, if the Attorney General certifies that the action is of general public importance. Upon application by an individual and in such circumstances as the court may determine just, the court may appoint an attorney for such individual and may authorize the commencement of a civil action under this subsection without the payment of fees, costs, or security. In any action commenced pursuant to this subsection, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee, not to exceed $3,000 in amount, as part of the costs, and the United States shall be liable for costs the same as a private person. In the case of an alleged act or practice prohibited by this section which occurs in a State, or political subdivision of a State, which has a State or local law prohibiting such act or practice and establishing or authorizing a State or local authority to grant or seek relief from such act or practice or to institute criminal proceedings with respect thereto upon receiving notice thereof, no civil action may be brought hereunder before the expiration of 30 days after written notice of such alleged act or practice has been given to the appropriate State or local authority by registered mail or in person, provided that the court may stay proceedings in such civil action pending the termination of State or local enforcement proceedings. This section shall not preempt any law of a State, the District of Columbia, a Tribal government, or a territory of the United States if the protections that such law affords to consumers are greater than the protections provided under this section. The Secretary of the Treasury shall issue such rules as the Secretary determines are necessary to implement this section, which may include prescribing additional exceptions to the application of the requirements described in subsection (a). The table of contents for chapter 51 of title 31, United States Code, is amended by inserting after the item relating to section 5103 the following: 5104.Retail businesses prohibited from refusing cash payments (a)In generalAny person engaged in the business of selling or offering goods or services at retail to the public who accepts in-person payments at a physical location (including a person accepting payments for telephone, mail, or internet-based transactions who is accepting in-person payments at a physical location)— (1)shall accept cash as a form of payment for sales made at such physical location in amounts up to and including $500 per transaction; and (2)may not charge cash-paying customers a higher price compared to the price charged to customers not paying with cash. (b)ExceptionsSubsection (a) shall not apply to a person if the person— (1)is unable to accept cash because of— (A)a sale system failure that temporarily prevents processing cash payments; or (B)temporarily having insufficient cash on hand to make change; or (2)provides customers with a device that converts cash into prepaid cards on the premises if— (A)there is no fee for the use of the device; (B)the device does not require a minimum deposit of more than one dollar; (C)any funds placed onto a prepaid card using the device do not expire, except as permitted under subsection (c); (D)the device does not collect any personal identifying information from the customer; and (E)there is no fee to use the prepaid card that the device produces. (c)InactivityWith respect to a prepaid card described under paragraph (2), the person providing the card may charge an inactivity fee in association with the card if— (1)there has been no activity with respect to the card during the 12-month period ending on the date on which the inactivity fee is imposed; (2)not more than 1 inactivity fee is imposed in any 1-month period; and (3)there is clearly and conspicuously stated, on the face of the mechanism that issues the card and on the card— (A)that an inactivity fee or charge may be imposed; (B)the frequency at which such inactivity fee may be imposed; and (C)the amount of such inactivity fee. (d)Right To not accept large bills (1)In generalNotwithstanding subsection (a), for the 5-year period beginning on the date of enactment of this section, this section does not require a person or entity to accept cash payments in $50 bills or any larger bill. (2)Rulemaking (A)In generalThe Secretary of the Treasury shall issue a rule on the date that is 5 years after the date of the enactment of this section with respect to any bill denominations a person is not required to accept. (B)RequirementWhen issuing a rule under subparagraph (A), the Secretary shall require persons to accept $1, $5, $10, and $20 bills. (e)Enforcement (1)Preventative relief (A)In generalWhenever any person has engaged, or there are reasonable grounds to believe that any such person is about to engage, in any act or practice prohibited by this section, any customer or prospective customer of such person aggrieved by such violation or threatened violation may deliver to the person, or cause to be so delivered by certified mail, with proof of delivery, a notice describing, in reasonable detail, the conduct or events constituting the violation or threatened violation, and giving notice that, unless such conduct is corrected or cured within 45 days after the date of delivery of such notice, a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other appropriate such relief, which may include a civil penalty as hereinafter provided for, may be brought against such person. (B)Response; cureIf, within the 45-day period described under subparagraph (A), the person described in that subparagraph establishes to the customer or prospective customer’s reasonable satisfaction, in a response provided in writing to the customer or prospective customer, that no violation occurred as alleged, or certifies that the violation alleged has been corrected or cured, and provides reasonable assurance that no such violation henceforth will be permitted to occur in the conduct of the person’s business, no further proceedings under this section may be undertaken. (C)Civil actionIf a person described under subparagraph (A), having received a notice described in that subparagraph, fails to respond in accordance with subparagraph (B), or responds but fails to reasonably establish that the violation alleged either did not occur or has been corrected or cured, the aggrieved customer or prospective customer shall be entitled to file a civil action against the person seeking relief as provided under this subsection. In any such filing, the customer or prospective customer shall attach to the complaint in such action copies of the notice given to the person pursuant to subparagraph (A) and the response, if any, received from such person. (2)Damages and civil penaltiesAny person who violates this section shall— (A)be liable for actual damages, together with, if actual damages are less than $250, liquidated damages of $250; and (B)a civil penalty of not more than $500 for a first offense and not more than $1,500 for a second or subsequent offense. (3)JurisdictionAn action under this subsection may be brought in any United States district court, or in any other court of competent jurisdiction. (4)Intervention of Attorney GeneralUpon timely application, a court may, in its discretion, permit the Attorney General to intervene in a civil action brought under this subsection, if the Attorney General certifies that the action is of general public importance. (5)Authority to appoint court-paid attorneyUpon application by an individual and in such circumstances as the court may determine just, the court may appoint an attorney for such individual and may authorize the commencement of a civil action under this subsection without the payment of fees, costs, or security. (6)Attorney’s feesIn any action commenced pursuant to this subsection, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee, not to exceed $3,000 in amount, as part of the costs, and the United States shall be liable for costs the same as a private person. (7)Requirements in certain States and local areasIn the case of an alleged act or practice prohibited by this section which occurs in a State, or political subdivision of a State, which has a State or local law prohibiting such act or practice and establishing or authorizing a State or local authority to grant or seek relief from such act or practice or to institute criminal proceedings with respect thereto upon receiving notice thereof, no civil action may be brought hereunder before the expiration of 30 days after written notice of such alleged act or practice has been given to the appropriate State or local authority by registered mail or in person, provided that the court may stay proceedings in such civil action pending the termination of State or local enforcement proceedings. (f)Greater protection under State lawThis section shall not preempt any law of a State, the District of Columbia, a Tribal government, or a territory of the United States if the protections that such law affords to consumers are greater than the protections provided under this section. (g)RulemakingThe Secretary of the Treasury shall issue such rules as the Secretary determines are necessary to implement this section, which may include prescribing additional exceptions to the application of the requirements described in subsection (a).. 5104. Retail businesses prohibited from refusing cash payments..