Payment Choice Act of 2025 Forces Retailers to Accept Your Cash (Up to $500)

The Payment Choice Act of 2025 is pretty straightforward: it makes sure brick-and-mortar stores can't refuse your cash for purchases up to $500. The core idea, according to Congress (SEC. 2), is that U.S. currency should be good everywhere, and people shouldn't be forced to use cards or digital payments if they don't want to. This bill sets out to make that a reality across the country.

Cash is King (Again)?

This bill directly tackles the growing trend of "cashless" businesses. Under the new rules (SEC. 3), if you walk into a store, they have to take your cash for anything under $500. No more being forced to swipe a card or use an app. They also can't charge you extra for using cash. Think of it like this: whether you're buying groceries, grabbing a new tool at the hardware store, or paying for that haircut, your cash is just as valid as any other payment method. For the first five years, businesses don't have to take anything bigger than a $20, but after that, the Treasury will set rules, guaranteeing acceptance of $1, $5, $10, and $20 bills.

The Prepaid Card Loophole (and its Limits)

There's a catch, though. Businesses can avoid taking cash directly if they provide a machine on-site that converts your cash into a prepaid card, but there are strict rules (SEC. 3). That machine has to be completely free to use – no fees, no minimum deposit over $1, and the funds on the card can never expire. The machine also can't collect your personal info. The prepaid card itself must be fee-free. So, in theory, you could load cash onto a card and use that, but the business can't force you to pay extra for the privilege. They can, however, charge an inactivity fee, but only if the card hasn't been used for 12 months, and they have to clearly disclose it.

Holding Businesses Accountable

So, how does this actually work in practice? If a store refuses your cash, you have to tell them, in writing, that they're violating the law (SEC. 3). They then have 45 days to fix the problem or give you a good reason why they can't. If they don't, you can take them to court. If you win, they could owe you damages, or at least $250 if your damages are less than that. Plus, there are fines: up to $500 for the first offense, and up to $1,500 for each one after that. The court can even award you up to $3,000 for attorney's fees. This puts the onus on you, the customer, to enforce your right to use cash. The bill also makes it clear that if your state has stronger consumer protection laws about cash payments, those state laws still apply (SEC. 3). This means the rules might look a little different depending on where you live.

Real-World Implications

This bill is a win for people who rely on cash – maybe you don't have a bank account, prefer the privacy of cash, or just don't want to deal with cards. It also helps keep things fair for everyone, regardless of their access to digital payment methods. Imagine an older person on a fixed income who prefers cash, or a young adult just starting out who hasn't built up credit yet. This bill guarantees they can still participate in the economy. On the flip side, businesses might have to adjust. While the prepaid card option exists, it still requires an upfront investment. And, while there are exceptions for temporary system outages or not having enough change, businesses will need to be prepared to handle cash transactions regularly.