Congress mandates cash acceptance, protecting unbanked shoppers from digital-only retail
H.R. 1138 — Payment Choice Act of 2025 · Filed by John Rose (R-TN) · 25 cosponsors · Introduced Feb 7, 2025 · Referred to committee
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What it does
This bill requires retail businesses that accept in-person payments to accept cash for transactions up to $500 and prohibits charging cash customers higher prices than card-paying customers. It includes narrow exceptions for system failures or insufficient change, and allows retailers to offer fee-free cash-to-prepaid-card conversion devices. For five years, retailers can refuse large bills ($50+), after which the Treasury must issue rules requiring acceptance of $1–$20 denominations. Customers can sue for violations, with damages starting at $250 and civil penalties up to $1,500.
Why we flagged it
The bill's core function is to protect consumer choice and access by mandating cash acceptance at retail. It is not primarily a financial-sector regulation or deregulation, but rather a consumer protection measure that constrains retailer behavior in favor of payment method neutrality.
What the text implies
- May accelerate adoption of cash-to-prepaid-card conversion devices as a workaround, potentially creating new fee structures downstream (inactivity fees on prepaid cards) that could disproportionately affect low-income cash users.
- The 5-year exemption for large bills ($50+) creates a temporary two-tier system; Treasury rulemaking in year 5 could become a flashpoint if industry lobbies for continued exemptions.
The full analysis lists 5 implications of this text.
Who stands to gain
Unbanked and underbanked consumers (financial inclusion benefit, not a sector); Prepaid card issuers (if retailers adopt conversion devices); Civil litigation bar (private right of action creates attorney fee opportunities)