New bipartisan bill introduced by Pa. Sen. John Fetterman seeks to protect cash as a payment option

WASHINGTON, D.C., USA — A new bipartisan bill introduced last week by Pennsylvania Senator John Fetterman and North Dakota Republican Sen. Kevin Cramer seeks to ensure consumers can keep using cash as a form of payment without extra charges.

The Payment Choice Act would preserve payment options for those who do not have checking accounts, savings accounts, or credit cards, Fetterman said.

“It’s simple: if you’re open for business in America, you should take U.S. dollars,” Fetterman said. “I’m proud to introduce the bipartisan Payment Choice Act with Senator Cramer because every American should be able to use paper currency if they choose. 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.”

“Cash is still legal tender in the United States, despite some businesses’ exclusive acceptance of electronic payments,” Cramer added. “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.”

The Payment Choice Act, introduced by Fetterman and Cramer on July 17, seeks to reinforce the legal tender status of U.S. currency by requiring all brick‑and‑mortar retailers that accept in‑person payments to also accept cash payments up to $500 per transaction — and prohibits charging cash‑paying customers higher prices than those using other payment methods.

The bill includes exceptions for temporary technical issues and for businesses providing free, no‑fee cash-to-prepaid-card conversion devices that meet specific consumer-protection criteria.

“Ensuring cash remains a viable payment option is vital for small businesses across the country, not to mention the millions of underbanked Americans who rely on consumer choice in payment for goods and services,” said Amusement & Music Operators Association President Brian Brotsch, a supporter of the bill.

“The National ATM Council (NAC) extends its sincerest thanks and appreciation to Senator Cramer and Senator Fetterman for their outstanding leadership and commitment to preserving the role of U.S. currency as legal tender and as a payment option for in-person purchases of basic goods and services,” said Bruce Renard, NAC’s Executive Director.  “The continued vitality and universality of cash in America is essential to maintaining the US 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.”

While the majority of American households have access to financial services, 4.5% of U.S. households do not have a checking or savings account. Those without access to financial services are more likely to have lower incomes, less education, or be a member of a racial or ethnic minority group.

Despite a decline in cash payments during the last few years, this demographic still represents nearly 20% of all payments in the U.S. economy.

The full text of the bill is available here.